181 / 2016-06-08 17:39:08

The financial constraints are impeding the growth of SME in developing countries An empirical study of Pakistan SMEs

SME,Developing economies,financing,financing problems,Pakistan

The Small and Medium Enterprises (SMEs) are important contributors to the economy. They contribute a lot. They can be called an engine of growth. They are helpful in providing an efficient market. The important point is that small and medium enterprises provide employment to people. The SMEs with higher turnover play a major role in removing the imbalances in the economy. The other advantage is that the entry and exit barriers are low due to this there is intense competition in the market. This competition creates competitive market pressure. Since SMEs are small in nature they face many financial problems. It is due to this reason many of them do not make it past the first year of establishment. They face many problems and performance issues and the contribution to economy remains low.
In this paper a survey of 35 SME was conducted, the businesses taken as a sample were those in Rawalpindi and Islamabad. The main aim of this paper is to determine how SME owners finance their businesses. The problems they face with their finances.