2013
DOI: 10.12955/ejbe.v8i2.376
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The Small and Medium Enterprises and Poverty in Pakistan: An Empirical Analysis

Abstract: Small and Medium Enterprises (SMEs) have got very much importance in the economic growth, employment generation and poverty alleviation in the economy. The annual time series data is used for examination of impact of SMEs on poverty in Pakistan for the period of 1972-2008. The study utilizes Johansen cointegration and error correction mechanism to examine long run and short impacts small scale industries and other explanatory variable on poverty in Pakistan. The results of the study confirm a strong and povert… Show more

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Cited by 37 publications
(46 citation statements)
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“…Such kind of industrial setup is common amongst developing economies like Pakistan, where micro and small enterprises cover major businesses in the economy and provide employment to a large number of work force (Gindling & Newhouse, 2014). These kind of enterprises are common in both rural and urban areas (Ali, 2013). MSEs are important for the provision of cheap goods and services (Cowling & Liu, 2014).…”
Section: Introductionmentioning
confidence: 99%
See 1 more Smart Citation
“…Such kind of industrial setup is common amongst developing economies like Pakistan, where micro and small enterprises cover major businesses in the economy and provide employment to a large number of work force (Gindling & Newhouse, 2014). These kind of enterprises are common in both rural and urban areas (Ali, 2013). MSEs are important for the provision of cheap goods and services (Cowling & Liu, 2014).…”
Section: Introductionmentioning
confidence: 99%
“…The demand for initial startup capital and working capital is very high and the supply is limited (Thio, Megananda, & Maulana, 2006). The formal financial institutions for the provision of microfinance are unable to meet the demand of low income earners (Ali, 2013). At the same time these formal financial institutions are unable to meet the needs of micro enterprises for the growth of their businesses (Babajide, 2012).…”
Section: Introductionmentioning
confidence: 99%
“…To overcome some of these issues that impede the development of SMEs, Ali et al (2014) suggested the development of formal financial markets with simple lending procedures, easy and inexpensive credits, and laws enforcing credit rights. Similarly, M. Hussain, Ajmal, Khan, and Saber (2015) recommended the development of business incubation centers to sustain and enhance the growth of SMEs.…”
Section: Literature Reviewmentioning
confidence: 99%
“…It contributes to the prosperity of a country in terms of providing employment (Abor & Quartey, 2010;J. Hussain et al, 2015), enhancing Gross Domestic Product (GDP)/ Gross National Product (GNP), giving birth to big and multinational corporations (Abor & Quartey, 2010) as well as alleviating poverty (Ali, Humayun, & Khan, 2014). Further, report that SMEs paly its role in distribution of economic resources, growth of exports, and in the development of entrepreneurship.…”
Section: Introductionmentioning
confidence: 99%
“…Majority of the studies conducted in the past, have focused on large enterprises only. Despite the importance of MSEs in economic development, and employment generation (Ali, 2013), MSE's are still ignored and there is little understanding that how MSEs can utilize their capabilities like entrepreneurial orientation and innovation, both these capabilities bring change towards better performance.…”
Section: Introductionmentioning
confidence: 99%