New entrepreneurs required for future productivity-based growth: Jafferjee

Sri Lanka needs a new set of entrepreneurs to drive future economic growth based on productivity, in transforming the current business landscape dominated by patronage, rent-seeking and crony capitalism, Advocata Institute Chairman Murtaza Jafferjee said.

Given the limited capacity of the government to stimulate the economy, he stressed that productivity-based growth, through critical reforms, remains the only way forward.  “This growth can only be achieved by enhancing productivity, meaning accomplishing more with fewer resources. Going forward, we have no margin for experimentation. We must build upon our current efforts without regressing.

Competition is the answer for productivity improvement. The moment you have the competition, then you need intelligent people to come and show how to reduce the costs,” he elaborated.  Jafferjee expressed his views while addressing a panel discussion hosted by the Central Bank, last week.

Moving forward, he opined that Sri Lanka needs to create 100,000 new entrepreneurs steer this initiative. 

“My sense is that you need to create two million new jobs: one million to increase the labour force and one million to replace low productivity jobs. 
The nature of business in Sri Lanka unfortunately has been focusing on patronage, rent-seeking and crony capitalism. We need to create like 100,000 new entrepreneurs,” he said.