Constraints to the Growth of Small and Medium-Sized Enterprises in Khyber Pakhtunkhwa (KP), Pakistan: A District-Level Survey Analysis

  • Shahid Ali
  • Maryam Jabeen
  • Benazir Naseem Khattak

Abstract

Using survey data from 341 SMEs operating across the seven districts in Khyber Pukhtunkhwa, the present study analyzes the factors affecting the growth of small and medium-sized enterprises. The sample is represented by three main industries: agriculture, industrial and service. We conducted the survey through trained manpower and the questionnaires were distributed through personal visits among the SMEs owner-manager. With-in each district, the method of convenience sampling was employed in arriving at significantly larger proportion of SMEs. Several factors have been identified as barriers to SME growth. The study has employed Principal Component Analysis, a multivariate statistical method, to rank the highest and lowest pertinent factors constraining the growth and development of these enterprises in KP. Among the range of internal and external variables identified by the study, lengthy time duration to get approval for a loan, lack of collateral, corruption and obstacles related to management are found to be the major factors that inhibit SMEs from becoming more successful in this region. The study further recommends several implications for policy not only for regulatory bodies and lending institutions but also for SME sector firms based on the findings from empirical investigation and survey results
Published
2010-04-22
How to Cite
ALI , Shahid; JABEEN , Maryam; KHATTAK , Benazir Naseem. Constraints to the Growth of Small and Medium-Sized Enterprises in Khyber Pakhtunkhwa (KP), Pakistan: A District-Level Survey Analysis . Business & Economic Review, [S.l.], v. 13, n. 1, p. 91-138, apr. 2010. ISSN 2519-1233. Available at: <http://www.bereview.pk/index.php/BER/article/view/372>. Date accessed: 23 oct. 2021.
Section
Articles