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Working Capital and Fixed Investment Effect on Sales Growth in SAARC Countries SMEs

Author

Listed:
  • Asad Ullah

    (PhD Scholar,)

  • Muhammad Khushnood

    (Assistant Professor,)

  • Hafizullah

    (Assistant Professor,)

Abstract

The study investigates the impact of various financing sources of working capital and fixed investment on sales growth. Population of the study comprises South Asian Association for Regional Cooperation (SAARC) countries’ small and medium sized enterprises (SMEs). Data of 6777 SMEs is retrieved from World Bank’s website. Multiple regression model is used to achieve the study objectives. Results signify a positive link between bank financing use for working capital and sales growth while the negative link between friends and family finance and sales growth is observed. Similarly all formal sources of finance used for fixed investment have positive link with sales growth. Finally, it is found that the government interventions and policy makers can alleviate access to formal sources of finance for boosting sales growth.

Suggested Citation

  • Asad Ullah & Muhammad Khushnood & Hafizullah, 2019. "Working Capital and Fixed Investment Effect on Sales Growth in SAARC Countries SMEs," Global Social Sciences Review, Humanity Only, vol. 4(1), pages 184-195, March.
    • Handle: RePEc:gss:journl:v:4:y:2019:i:1:p:184-195
    DOI: 10.31703/gssr.2019(IV-I).17
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    More about this item

    Keywords

    SMEs; Informal Finance; Nonbank Financial Institute; SAARC;
    All these keywords.

    JEL classification:

    • R00 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General - - - General
    • Z0 - Other Special Topics - - General

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