Sme and Globalization
Role of Globalization on SMEs Business in Pakistan
Written By
Sehrish Soomro &
Batool Pirzada
Students of Sukkur Institute Of Science & Tech:
With the profound guidance of
Mr. F.M. Shaikh
Assistant Professor, Department of Agri: Economics
SZABAC-Dokri-Larkana-Sindh
ABSTRACT
This research explores the impact of globalization on SMEs business in Pakistan. The Small and Medium Scale Enterprises (SMEs) are playing very significant role in almost all the economies around the world irrespective of the countries’ development stage. Most of the developed countries like Japan, China, Malaysia, Taiwan, have developed through SMEs business, in many aspects such as employment generation, export, tax, income, innovation, competitiveness. Recent wave of Globalization has influenced overall business of the world. SMEs grew more in this wave of Globalization. Particularly in Pakistan, there has been a significant impact on income distribution, social stability, domestic resources utilization technique and structural and regional development.
There is a wealth of economic evidence that demonstrates that globalization brings great benefits as well as costs. It offers the opportunity for a higher rate of sustainable growth - growth that translates into longer, healthier lives and improved living standards. But, if we look at another side of picture then it has been proven that some of the competitive obstacles often faced by the little fish in the big ocean. Compared to larger firms, small and medium-sized enterprises (SMEs) are generally less well-equipped to face increases in international trade. As a result of their lower productivity, many have found it difficult to compete. Also, given their limited resources, they have found it more difficult to take advantage of the removal of tariff barriers. For this paper, data were collected from 100 SME owners by using random sampling. Questionnaires have been formulated as an instrument for measuring the impact of
Written By
Sehrish Soomro &
Batool Pirzada
Students of Sukkur Institute Of Science & Tech:
With the profound guidance of
Mr. F.M. Shaikh
Assistant Professor, Department of Agri: Economics
SZABAC-Dokri-Larkana-Sindh
ABSTRACT
This research explores the impact of globalization on SMEs business in Pakistan. The Small and Medium Scale Enterprises (SMEs) are playing very significant role in almost all the economies around the world irrespective of the countries’ development stage. Most of the developed countries like Japan, China, Malaysia, Taiwan, have developed through SMEs business, in many aspects such as employment generation, export, tax, income, innovation, competitiveness. Recent wave of Globalization has influenced overall business of the world. SMEs grew more in this wave of Globalization. Particularly in Pakistan, there has been a significant impact on income distribution, social stability, domestic resources utilization technique and structural and regional development.
There is a wealth of economic evidence that demonstrates that globalization brings great benefits as well as costs. It offers the opportunity for a higher rate of sustainable growth - growth that translates into longer, healthier lives and improved living standards. But, if we look at another side of picture then it has been proven that some of the competitive obstacles often faced by the little fish in the big ocean. Compared to larger firms, small and medium-sized enterprises (SMEs) are generally less well-equipped to face increases in international trade. As a result of their lower productivity, many have found it difficult to compete. Also, given their limited resources, they have found it more difficult to take advantage of the removal of tariff barriers. For this paper, data were collected from 100 SME owners by using random sampling. Questionnaires have been formulated as an instrument for measuring the impact of
References: Journal article by Pierre-Andre Julien, Andre Joyal, Laurent Deshaies; Journal of Small Business Management, Vol. 32, 1994: Pakistans Small industries entrepreneurs Gallup/BRB World Bank survey Small and Medium enterprises development (A recipe For development and just distribution) A research paper by SMEDA Research cell Small and medium enterprise development( A visionary action in Saudi Arabia) by Ismail Radwan & Jamal al-Kibbi( World Bank Institute) Federal Bureau of Statistics (2004), Economic Census –2000, Pakistan. Federal Bureau of Statistics Economic Survey 2007–08 Pakistan. World Bank/SMEDA (2007) Investment Climates Survey, Pakistan. World Bank (2007) Survey for SMEs Policy Note, Pakistan.