Role of small businesses in economic development

1. SMEs drive economic growth and job creation
   SMEs play a crucial role in expanding economies, creating jobs, and driving innovation globally.
2. Pakistan’s economy heavily depends on small businesses
   SMEs make up 90% of enterprises, employ 80% of non-agricultural workforce, and contribute 40% to GDP.
3. Limited financial access threatens business survival
   Most SMEs rely on personal savings, family loans, or supplier credit due to limited bank support.
4. Operational challenges hinder SME sustainability and growth
   Poor marketing, lack of skilled labour, and limited business knowledge lead to closures.
5. Support institutions like SMEDA crucial for SMEs
   SMEDA can mentor businesses, link them with banks, and promote heritage-rich businesses.

Summary

Small businesses form the backbone of Pakistan’s economy, contributing significantly to employment and GDP. However, they struggle due to limited financing options, poor marketing strategies, and lack of skilled workforce. Many heritage-rich businesses also face closure without proper support. Organizations like SMEDA can play a vital role by connecting SMEs with banks, providing marketing training, and promoting businesses with cultural value. Ensuring SME survival is critical not just for economic growth, but for preserving Pakistan’s cultural and entrepreneurial heritage.

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