Problems of Small and Medium Enterprises in Khyber Pakhtunkhwa

Habib Ur Rahman, Sardar Anis Ur Rahman


The role of SMEs in the economic development of any economy can hardly be over emphasized. In developing country like Pakistan SMEs is the major sector of employment. The SMEs in a province like Khyber Pakhtunkhwa attains more
importance because of its rich mineral potential, irrigated agricultural land with very hard working labor force and entrepreneurial talents. In spite of these natural blessings out of a total 2222 SMEs there are more than 330 units which have been closed their business for one reason or the other. The failure or slow growth of SMEs in the province warrants intensive study for finding out the root cause and suggest/recommend/ measures which can help revive and rejuvenate the existing SMEs and also pave way for expansion in this vital sector of the economy. This study focuses on the existing situation of SMEs in province, identifies problems confronted by the SMEs and on the basis of first-hand information collected through a questionnaire makes recommendations for improving the situation.

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ISSN 2521–5515