Small And Medium Enterprises As An Engine Of Economic Growth: Evidence From Pakistan

Abstract

This paper seeks for a hypothetically sound and empirically validated justification of small and medium-sized enterprise (SME) growth to serve as a strong base for the growth of the economy and having a dominant effect on the provision of employment opportunities and removal of poverty from the backward areas in Pakistan. Its role in the phase of growth is undeniable.  Research has been conducted to analysis it in the area of Khanewal. Collected data shown that contribution of small and medium enterprises is remarkable place in the removal of poverty and unemployment. Income and education emerge as primary engines: A 10% IncS increase could raise EMP by 2.7%, amplifying SMEs' GDP contribution (30% nationally). Conversely, WhL and DsKm's negative signs signal policy needs—excessive hours reduce worker retention, while distance limits urban linkages essential for SME scaling.  Also there is a significant role in raising level of income.  Policy should be adopted to increase its share in the economy.

Keywords:

SMEs; Poverty; Economic Growth; Unemployment.