A study entitled ‘ Identifying Gaps in the Entrepreneurial Ecosystem in the North and East of Sri Lanka’, conducted among entrepreneurs in the northern and eastern provinces of Sri Lanka, finds that entrepreneurs are unable to advance their start-ups and thrive not because they lack hard work, talent, and aspirations but because they lack adequate access to knowledge, resources (investment), and skills to retrain their capacity to act towards entrepreneurial activities and achievements.
The Gate Institute conducted the above-mentioned action-driven study in collaboration with the Universities of Jaffna, Vavuniya and the Eastern University. In conjunction with the problem identification, this research stemmed from the understanding of existing gaps in the entrepreneurial ecosystem of the Northern and Eastern regions. The causes of the existing gaps trace back to the long-prevailing structural and cultural root-causes, such as how entrepreneurship is not a norm in North & East. The study mentions to have utilised a snowball sampling method, where responses were received from 151 early-stage entrepreneurs and intrapreneurs who have business ideas in the conceptualisation stage.
The data analysis section of the research reveals findings through graphical illustrations and interpretations. As indicated in the research findings section, respondents have expressed concerns regarding both the demand and supply gaps in the ecosystem. For example, the majority of the respondents have mentioned that they are unaware of mentoring and consulting services that support entrepreneurs in refining their ideas. Others have indicated that such services are expensive, and they can hardly afford them.
As the findings further suggest, respondents also mentioned reasons such as having no investment, not knowing how to conduct market research, not getting proper support to refine their ideas, and fundamental knowledge gaps such as not knowing how to register and legally conform their businesses. The research further suggests that a significant number of respondents have expressed concerns regarding a lack of managerial and leadership skills to proceed with their start-ups. This revelation correlates with another finding that many entrepreneurs and intrapreneurs involved in this study also feel that there is no guarantee that their start-ups will succeed. Such a statement evidences a lack of confidence and pitfalls in entrepreneurial traits such as risk-taking.
Moreover, the findings of this study coincide with the revelation of the International Labour Organisation (2020) that entrepreneurs are not thriving in the Northern and Eastern provinces; rather, they survive. Other issues discussed include market saturation in certain industries and the inability to bargain better prices, leaving entrepreneurs in these regions to survive within a limited network.
The research’s findings have therefore illuminated vast gaps in the ecosystem and among its actors. Primarily, the findings highlight gaps such as access to capital, entrepreneurship training, skills development, knowledge-sharing, and mentorship. As the study signifies, the identified situation limits youth’s potential to innovate and entrepreneurs’ ability to bargain better prices, scale, and sustain.
As highlighted in the Gate Institute Website (2025), the study stresses immediate attention from all the community stakeholders, such as the government, educational institutions, NGOs, diaspora, CSOs, donors, and industry, to create an Inclusive Entrepreneurial Ecosystem (IEE) in the Northern and Eastern provinces to effectively organise, mobilise, and manage the necessary skills, knowledge, resources, and opportunities among both opportunity entrepreneurs and necessity entrepreneurs as well as intrapreneurs equitably for entrepreneurial achievement.
The study’s recommendations are illuminated with interesting actionable points, along with a research gap identified for further study.
The complete version of this study can be downloaded via https://thegateinstitute.org/wp-content/uploads/2025/02/Identifying-Gaps-in-The-Entrepreneurial-Ecosystem-in-the-North-and-East-of-Sri-Lanka.pdf.
