The purpose of the small and medium enterprises in ensuring its prospect future through growth is not only about doing further business or making more money or acquiring greater kudos through larger size. Where knowledge management maturity is high, there the firms are realizing handsome profits and significant increase in growth. Growth is a strategy that basically addresses the question of unsafe and doubtful environments, with the help of attainment of greater influence over the environment within which the enterprise works. In the European economy, SME’s are recognized as the primary players. SME’s in Spain, signify that from all registered businesses which are more than 99.8%, almost 70% of the employment and make the contribution 65% to GDP.
The dangers of losing core knowledge to an opponent are often more obvious among SME’s, while succession planning becomes all the more decisive when dedicated knowledge resides with just one or two key employees. In Pakistan, small and medium size enterprises are operating and contributing a handsome share of more than 40% towards the GDP and ensuring employment to millions. There are approximately 320,000 SME’s in Pakistan. This sector also provides opportunity to utilize vocational skills for both metropolitan and rural women. The importance of SME’s has increased manifolds due to their direct or indirect donation towards the value addition and exports for big industrial establishments. The strongest arguments favoring SME’s are that they provide higher resource distribution from societal point of view, because they are the open source of more employment at smaller capital cost as compared to large enterprises. According to Pakistan Ministry of Labor, there will be an addition of approximately 16 million persons in labor force at the end of 2008. To deploy these new entrants it needs Rs. 5.2 trillion in large scale sector while on the other hand only Rs. 8 billion needed in small/micro scale sector. According to the definition of SMEDA (small and medium size enterprise development authority of Pakistan , those firms will fall under the category of SME who have up to 250 employees, or 250 million of paid up capital and or sale of 250 million rupees annually. As it is the major sector of the economy, a lot of work is needed to make this sector more profitable and attractive for foreign investment. Being the student of research and knowing the importance of this sector, my research also revolves around knowledge management and SME’s. The data will be collected from various SME’s located in different cities. Similarly multinational corporations (MNC’s) are also working in Pakistan in various fields like telecommunication, banks etc. it has been observed that these MNC’s are practicing knowledge management practices in a better way and ensuring better profits, sustainable growth along with competitive advantage over others.
1.2 Objectives and scope of the research:-
As mentioned earlier about the...