Major Barriers to Manufacturing SMEs Growth and Survival: Evidence From Emerging Economy Pakistan


  • Sher Ali PhD Scholar, College of Economics and Management, China Three Gorges University, 443000 Yichang, China
  • Hazrat Bilal Assistant Professor, Centre for Management and Commerce, University of Swat, Pakistan
  • Ashfaq Ahmad Assistant Professor, Centre for Management and Commerce, University of Swat, Pakistan
  • Jawad Hussain Associate Professor, Department of Commerce and Management Sciences, University of Malakand, Pakistan



Manufacturing SMEs, Financial Resources, Market information, Procurement


SMEs play a tremendous role in increased national economic development and consider the backbone of the economy around the world. It contributes a great share in the GDP of Pakistan and a huge number of the workforce involved. However, despite such great importance, the SMEs growth in Pakistan face numerous challenges for access to financial resources, market information, and procurement contract. Hence the main aim behind this study is to investigate the influence of these barriers on manufacturing SMEs' growth and survival. A structured questionnaire was distributed among 172 managerial level employees of manufacturing SMEs to explore the influence of financial resources, market information, and procurement contract on the growth of SMEs by incorporating the Structural Equation Model (SEM). The study shows that the lack of access to financial resources, market information, and procurement contract negatively influence the growth and survival of SMEs. Therefore, it needs a certain action to eliminate such barriers for SMEs' sustainable growth and survival. This study suggestion will help to contribute to policymakers and industry players to overcome such barriers. 


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How to Cite

Ali, S. ., Bilal, H. ., Ahmad, A. ., & Hussain, J. . (2020). Major Barriers to Manufacturing SMEs Growth and Survival: Evidence From Emerging Economy Pakistan. Review of Economics and Development Studies, 6(4), 845-856.