Abstract:
The present study is an attempt to identify the financial issues of SMEs of Pakistan.
The general objective of the study is to analyse the financing issues of the small scale
industries with appropriate alternatives and financing solutions. The extensive
literature about financing of SMEs along with single hypothesis (for testing) has been
included in research work as base of study. Data collection has performed through
primary sources. Quantitative research methods have been employed for the research
work. For this research work, sample size of 100 SMEs has been selected from
Islamabad and Rawalpindi regions of Pakistan. Statistical data analysis techniques are
used to analyse the data which was collected through questionnaire’s survey from
SMEs and the results have been presented with hypothesis testing. After identifying
the financial issues, the alternatives, financial solutions and recommendations have
been given for policy measures. The findings of research work indicate that access to
finance is the major issue confronted by SMEs sector in growth and development.
Soft and friendly government policies, short and long term loans at lowest interest rate
for running and technology up gradation are recommended. NBFIs long term financial
lending was found to be the most suitable alternative for financial solutions.
PURPOSE:
To purpose of this study is to look into the imperative issue of SMEs financing in
Pakistan and besides to recognize other elective financing choices accessible to
SMEs, for example the financial institutes like banks, non-banking financial
intermediaries, or other available options which SMEs’ owners may be unaware of to
utilise them fully.
METHOD:
Primary data has been collected from a survey of SMEs in Pakistan using a
comprehensive structured questionnaire.
