Exploring the Impact of Sustainable Financial Practices on Perceived Business Development and the Challenges Faced by Small Entrepreneurs in Implementing those Practices

Abstract

This qualitative study explores the impact of sustainable financial practices on perceived business development and identifies the challenges faced by small entrepreneurs in implementing these practices within the Colombo District, Sri Lanka. An inductive approach and interpretivist paradigm were employed, utilizing in-depth interviews with 20 small-scale entrepreneurs across 10 industries selected through purposive judgmental sampling. Thematic analysis of the data revealed that sustainable financial practices significantly contribute to market expansion, revenue growth, improved resource management, and brand recognition while aiding in overcoming challenges. However, small entrepreneurs face obstacles such as balancing shortterm financial needs with long-term sustainability, external environmental factors, and managing stakeholder expectations. The findings provide valuable insights into the benefits and barriers of sustainable financial practices, highlighting the need for strategic planning, stakeholder communication, and innovative funding solutions to foster business development.