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Barriers to the Growth of Small Firms in Pakistan: A Qualitative Assessment of Selected Light Engineering Industries

Author

Listed:
  • Nazish Afraz

    (Adjunct Faculty, Department of Economics, Mushtaq Ahmad Gurmani School of Humanities and Social Sciences, Lahore University of Management Sciences, Pakistan.)

  • Syed Turab Hussain

    (Associate Professor, Department of Economics, Mushtaq Ahmad Gurmani School of Humanities and Social Sciences, Lahore University of Management Sciences, Pakistan.)

  • Usman Khan

    (Adjunct Faculty, Department of Economics, Mushtaq Ahmad Gurmani School of Humanities and Social Sciences, Lahore University of Management Sciences, Pakistan.)

Abstract

This article identifies constraints and barriers to growth for small firms in Pakistan, a survey of the existing literature and through in-depth interviews with a sub-sample of firms in two important SME sectors, that is electrical fans and sporting goods. Policy recommendations for the SME sector include addressing problems in contract enforcement (such through alternative dispute settlement mechanisms), promoting R & D through linkages with academia locally and research institutions globally, simplifying of the tax regime to encourage transparency, resolving the energy crisis and rationalize power tariffs, increasing the availability of credit to SMEs (allowing alternative forms of collateral). In addition, more detailed recommendations specific to the fan and sporting goods sectors are also offered.

Suggested Citation

  • Nazish Afraz & Syed Turab Hussain & Usman Khan, 2014. "Barriers to the Growth of Small Firms in Pakistan: A Qualitative Assessment of Selected Light Engineering Industries," Lahore Journal of Economics, Department of Economics, The Lahore School of Economics, vol. 19(Special E), pages 135-176, September.
    • Handle: RePEc:lje:journl:v:19:y:2014:i:sp:p:135-176
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    References listed on IDEAS

    as
    1. Paolo Angelini & Andrea Generale, 2008. "On the Evolution of Firm Size Distributions," American Economic Review, American Economic Association, vol. 98(1), pages 426-438, March.
    2. Syed Turab Hussain & Usman Khan & Kashif Zaheer Malik & Adeel Faheem, 2012. "Constraints Faced by Industry in Punjab, Pakistan," Working Papers id:5090, eSocialSciences.
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    Cited by:

    1. Abdul Raziq, Retha Wiesner, 2016. "High Performance Management Practices and Sustainability of SMEs. Evidence from Manufacturing and Services-based Industries in Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 3(2), pages 83-107, October.
    2. Naveed Ali & Olivier Karl Butzbach & Habib Ali Katohar & Hassan Imran Afridi, 2024. "Structural and External Barriers to Pakistan’s Economic Growth: Pathways to Sustainable Development," World, MDPI, vol. 5(4), pages 1-10, November.
    3. Umaima Imran, 2025. "Misallocation of Resources, Political Connections and External Flows," LCERPA Working Papers jc0151, Laurier Centre for Economic Research and Policy Analysis, revised Jan 2025.
    4. Raheela Maula-Bakhsh, Abdul Raziq, 2018. "Relationship between Servant Leadership and Subjective Well-Being: Evidence from Manufacturing and Services based SMEs in Pakistan," Journal of Management Sciences, Geist Science, Iqra University, Faculty of Business Administration, vol. 5(1), pages 62-85, March.
    5. Idrees Khawaja & Nasir Iqbal, 2019. "Determinants of Expansion of Micro and Small Firms and State of Entrepreneurship in Pakistan," PIDE-Working Papers 2019:160, Pakistan Institute of Development Economics.
    6. Uzma Haroon & Mohd Noor Mohd Shariff & Mohd Sufli Yusof, 2019. "Exploring the Relationship Between Innovation Capability, Total Quality Management and SMEs Performance in Electric Fan Industry of Pakistan: Moderating Effect of Relational Learning," International Journal of Financial Research, International Journal of Financial Research, Sciedu Press, vol. 10(3), pages 353-359, May.
    7. Theresa Chaudhry & Zunia Tirmazee & Umair Ayaz, 2023. "Experimental Evidence on Group-based Attendance Bonuses in Team Production," Journal of South Asian Development, , vol. 18(1), pages 90-110, April.

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    More about this item

    Keywords

    Pakistan; SMEs; light engineering; constraints; electrical fans; sporting goods.;
    All these keywords.

    JEL classification:

    • L10 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - General
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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