Sme Development In Pakistan. Do Economic Growth And Government Support Matter?

2801 words - 11 pages

In business world, small and medium enterprises have a long history of service for providing employment opportunity to the people of country. It increases the ability of people to make them more innovative and to cope with unemployment crisis. Small and medium-sized enterprises (SMEs) are seen as a key to economic growth, innovation and employment growth significant employment potential, revenue generation and technological advancement in most economies. It is very important sector in both developed and developing countries.
In Pakistan, SMEDA defines Small & Medium Enterprises, as approved in SME Policy 2007, as an enterprise that has up to 250 employees, or a paid up capital of 25 Million PK Rupees, or an annual sale of up to 250 Million PK Rupees. The Federal Government, in line with the economic development of Pakistan may, from time to time modify the eligibility criteria as it sees fit. All providers of services receiving funding from the Government may define more narrow scopes for specific targeting purposes (Smeda, 2007).
In developing countries like Pakistan SMEs play very important role by providing employment opportunities. SMEs provide platform to people to establish business with minimum capital. SMEs development depends upon many factors like infrastructure, finance, labor, location and market, political, law and order situation. The structure of SMEs changes in term of size, work force, market and outcome as they develop.
Recently in literature there is an issue about the existence of SMEs with increase in economic development of developing countries. Another issue which requires research is that how much government support requires for SMEs development (Tambunan, 2008). This study aims to address both issues in the setting of Pakistan.

Rational of the study
This study would add up the knowledge in the literature about the existence and success of SMEs in case of growth of Pakistan’s economy. It would tell us that with advancement of Pakistan’s economy SMEs sector would persist or replaced by large Les. Secondly this study would help to estimate the level of dependence of SMEs growth on government SMEs support programs. This calculated level of support would be very helpful for SMEs policy makers in formulation of SMEs policies.
Research objectives
The development of SMEs brings many changes in country like increase in employment level, output shares, input material, output composition etc. the development occurs due to many factors like economic development in the country and government SMEs support promotion programs. Main objective of this research is to examine empirically the effect of these two factors on growth of SMEs in Pakistan by using latest available data.
Research question
This study aims to answer two research questions (i) will the SMEs vanish with long run economic development? (ii) will the economy be dominated by large enterprises (LEs) in the long run, (iii) or these enterprises will survive...

Find Another Essay On SME Development In Pakistan. Do Economic Growth And Government Support Matter?

he role of economic geography in economic development and the impact of ICT on economic growth

2233 words - 9 pages countries are armed with good communications. On the contrary, some writers believe that geography still matters a great deal for economic interaction and for the spatial distribution of income.To discuss, I will concentrate on the role of economic geography in economic development and the impact of ICT on economic growth. From the existing inequality of economic development, we can see distance still matters in terms of economic transactions and

China: Economic growth and Regional Development.

4286 words - 17 pages for cheap labour, a fact that the Chinese government wanted to capitalize on.Slow rate of growth: China aped the Soviet economic model to a large extent from the 1950's. Though this led to a consistent growth of 4% per annum, this wasn't enough to sustain the economy, and did not solve the problem of unemployment.The Cultural Revolution was launched by Chinese community party chairman Mao Zedong in 1966 after the failure of the 'great leap forward

Corruption and its Impact on Economic Growth and Development.

10433 words - 42 pages substantial portion of the government budget so as to make government consumptionDetrimental rather than beneficial for economic development. Misdirected public funds represent a high opportunity cost for the economy. When this misdirection is severe enough, needy sectors of the economy suffer due to credit rationing which retards their growth by compromising on efficiency and productivity. In such a case government expenditure may actually have a

India and China: A Comparison of Economic Growth and Development

2154 words - 9 pages century.The history of economic development in India shared many similarities as well as a few differences with the development of China. Both countries implemented a socialist model to reform economic policy. India implemented a socialist model that promoted nationalism, while China used the socialist reform to open its doors to foreign companies. India's promotion of nationalism encouraged growth of Indian companies and reduced dependence upon

Critically assess the case of government support of small business, both in terms of business start - up and development

2982 words - 12 pages Teaching for entrepreneurial development and small business has played a significant part in governments' policy approach to economic development .It is beyond doubt that there has been a significant growth in self employment and small business development over the past few years .As it can be seen from the quotes, small businesses are becoming more and more important and by now 99.1% of all businesses fulfil the characteristics of a small

How does fashion matter to the Garment District and the economic development of New York City?

2841 words - 12 pages produced and marketed at an affordable cost. The Garment District also helps support young designers in a way that no other major fashion hub can. There is nowhere else in the world that is easier to start a fashion line than here in New York City. The City’s Economic Development Corporation has launched several programs to help emerging students and designers acquire financing. They also strive to “improve the business skills of designers, market New

With Reference to a company of your choice, discuss how SMEs in South Africa can contribute to economic growth recovery and development.

2206 words - 9 pages SMEs (small and medium –sized enterprises) are increasingly becoming one the most important enterprises with the most significant change in the economic situation of many countries. Government has since realised the importance of such business and started developing the SME sector. SMEs have reached a 7 percent growth rate and account for approximately 40 percent of the GDP (Gross Domestic Product). There are about 40 000 entrants every year

Economic Globalization and What the Government Can do about Poverty and Inequality through Jobs and Wages

1228 words - 5 pages policies are quite compatible with economic efficiency and economic growth.Bibliography"Globalisation, Jobs and Wages." ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT. June 2007. Web. 4 Dec. 2009. .Grusky, David B., and Ravi Kanbur. Poverty and inequality. Stanford, Calif: Stanford UP, 2006. Print.Page, B., and J. Simmons. 2000. What Government Can Do: Dealing with Poverty andInequality. Chicago: University of Chicago Press.Royce, Edward Cary

"Let the Government do its Job" A paper arguing in support of the government in the aftermath of Sep 11th. Touching on the PATRIOT Act, Military Commissions, and Classification of Doc.

1624 words - 6 pages section gives the federal government the ability to combat terrorism by allowing them access to the information that they need to do so. Further more while there is some potential for abuse, as there is with any power given to the government, it is subject to substantial review and except in cases of imminent danger the government must still show a judge that they need to seize these "things"3. Something that combatants of this section would point to

How does China's fascist-style government help/impede economic growth and the well-being of its subjects?

1265 words - 5 pages God to acknowledge this, either. So, yes, if such fascist apologists want to engineer an imaginary system that is based on child rape and murder (for example) that "delivers the goods" for the majority of the population, no, I won't support it. One can go support that system if your only criterion is economic, I won't. Dostoevsky's Grand Inquisitor posed a similar scenario to yours long ago. In any case, not being a communist, I do not believe

'Economic Growth is a Necessary but not Sufficient Condition of Economic Development"

894 words - 4 pages place if there is efficient use of people's knowledge and capability and good government policies.Development is a long-term process. It looks into all aspects of growth, taking into account factors like the environment and human needs. Economic growth can only take place in the long run if there is development simultaneously. Sustainable development is defined as the world bank as "development that meets the needs of the present without comprising

Similar Essays

Economic Growth And Development Essay

820 words - 3 pages available to them; in no way does it ensure a happier life in more subjective terms. It does not do away with the worries of a person, social evils or in any way reflect upon a better form of government, an efficient legal and judicial system, etc. Economic development usually takes place along with industrialization, which leads to an increase in pollution in the environment which takes its toll on the quality of life of citizens

Economic Growth And Development Essay

1354 words - 5 pages 1)Distinguish between economic growth and economic development.Economic growth is a measure of a county’s productivity and the total combined income of that country. Economic development is a measure of how developed a country is i.e. people’s standard of living. For economic development to occur, economic growth also is needed but economic development is not needed for economic growth to occur.BasisEconomic DevelomentEconomic

Impact Of Foreign Remittances On Economic Growth And Poverty Reduction In Pakistan

2476 words - 10 pages insignificant relation with GDP of Pakistan. One percent increase in foreign remittances will raise GDP by 0.25 percent. The study also considered the suggestion that Pakistan needs stable and visionary government to enhance foreign capital inflow to boost investment and economic growth. Qayyum et.al (2008), analyzed impact of remittances on economic growth and poverty: Evidence from Pakistan. The study focused on the importance of remittances

Financial Development & Economic Growth Essay

2451 words - 10 pages economy. Concepts like population growth which disintegrate economic growth and education and health which improve human capital accumulation are gaining a lot of importance are being demonstrated as the key factors in the development of economy and it's GDP. Different critics and economist have different point of views and provided their own theories and research work to support them.Two key factors influence economic growth: technological change and