SMALL AND MEDIUM ENTERPRISES GROWTH IN PAKISTAN A STUDY ON THE SUKKUR REGION

Abstract

This study investigates the factors influencing the growth of Small and Medium Enterprises (SMEs) in the Sukkur region of Sindh, Pakistan. While SMEs constitute a significant portion of Pakistan’s economy, research on their growth, particularly in underdeveloped regions, remains limited. Drawing from a sample of 205 SMEs in Sukkur, Khairpur, and Larkana, this research identifies key determinants of SME growth such as firm age, gender of ownership, business type, export activity, technical know-how, and geographic location. Using Ordinary Least Squares (OLS) regression analysis, the study finds that factors like age, urban location, technical knowledge, and male ownership significantly impact growth. While exporting positively influences growth in older firms, it shows a negative association in younger firms, possibly due to limited networks and resources. The study confirms the partial applicability of Gibrat’s Law and highlights the unique challenges and opportunities faced by SMEs in developing regions. The findings provide policy insights for promoting SME development in Pakistan and contribute to the broader discourse on enterprise growth in emerging economies.