Abstract
The present study identifies barriers and constraints to growth for small and medium-sized enterprises in Khyber Pakhtunkhwa by using survey data from 341 SMEs operating across the seven districts of the province. The sample is represented by three main industries: agriculture, industrial, and service. The survey is conducted through trained manpower and the ques_x0002_tionnaires were distributed through personal visits among the SMEs owner-manager. Within each district, the method of convenience sampling was employed in arriving at a 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.
Keyword(s)
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