The role of small and medium enterprises and poverty in Pakistan: An empirical analysis
نویسندگان
چکیده
The role of Small and Medium Enterprises (SMEs) is very important in economic growth, employment generation and poverty alleviation. Annual time series data has been used to examine the impact of SMEs on poverty in Pakistan for the period between 1972 and 2007. Log-linear autoregressive model has been estimated by Ordinary Least Squares (OLS) method using one year previous value of HCR as explanatory variable. The results of the study confirm a strong and negative impact of small scale industries’ output on poverty levels in Pakistan. The economic policy makers must focus on the establishment of formal financial markets to overcome the financial constraints faced by the SME sector in Pakistan. Simplification of lending procedures, enforcement of credit rights, and reduction in credit costs would be helpful for the establishment of robust SME sector in Pakistan.
منابع مشابه
Impact of Basel II Capital Accord on Small and Medium Size Enterprises (SME): An Empirical Study on a Group of Export Oriented SMEs
The purpose of this study is to find the relationship between lending to Small and Medium-size Exporter Enterprises (E-SMEs) and the use of Basel II Capital Accord for the first time in the banking system of Iran. Results showed that 96.69 percent of small firms were in the very low risk category of credit portfolio. This proof explains a consistent and balanced relationship between risk- weigh...
متن کاملEast Asian Production Networks – The Role and Contribution of SMEs
The Asia-Pacific region generates over half of global economic activity (54.2%) and about 43.7% of global trade, and is the most dynamic region in the global economy. At the core of this is an increasingly dynamic, vibrant and entrepreneurial small-medium sized enterprise sector. Advances in information and communications technology, market liberalisation and moves towards closer regional econo...
متن کاملThe Effect of Economic Growth Rate Uncertainty on Financing Small and Medium Enterprises in Iran
Today, small and medium-sized enterprises (SMEs) play a key role in both developing and developed economies. However, the uncertainty of macroeconomic indicators, such as economic growth, may affect financing and investment of the SMEs in an economy. The present study explores the effect of the economic growth rate uncertainty on financing SMEs in Iran. To this end, the study has applied the Br...
متن کاملIslamic finance for small and medium enterprises: challenges and solutions
Small and medium enterprises (SMEs) play a vital role in the economy. In developing countries, these companies play an important role in creating employment, especially for women. Investing in the development of SMEs is a long-term and smart strategy with sustainable returns. SMEs constitute the vast majority of companies. Globally, SMEs constitute more than 95% of all productive units, when fo...
متن کاملIdentifying the Indicators of the Theory of Planned Behavior in Successful Entrepreneurs of Small and Medium-Sized Enterprises
This paper aims to identify the indicators of the theory of planned behavior which are common among successful entrepreneurs as role models in order to help the growth of small and medium-sized enterprises. This study uses an applied research method, integrated data, and descriptive data analysis. Initially, in accordance with the purposive approach of typical case sampling, semi-structured int...
متن کامل