A Comparative Study of Southern Punjab and Balochistan SMEs Success vs Failure Factors

Abstract

Purpose: SME’s in Pakistan like developed economies play crucial role in the economic development and sustainability as long as entrepreneurs should be mindful about SME’s success and failure factors. In the extant literature, particularly in Pakistan, there is a lack of studies that have been empirically examined the comparative factors of Southern Punjab and Balochistan this setting particularly in Pakistan. The current study has focused on the comparative analysis of success or failure of Southern Punjab and Balochistan SME’s. The purpose of paper is to examine the aspects of SMEs that are central to their success/failure functioning in both areas of Pakistan.
 Design/Methodology/Approach: Data was collected through a questionnaire using the Lussier’s Model of success or failure factors among the owners of successful and unsuccessful SMEs. The researchers collected 200 questionnaires from SMEs. Data was analyzed by using the logistic regression technique. Findings: Results of the current study showed that management experience, planning, professional advice, staff, product and services, marketing, and age are important for the viability and success of SME’s operating in Southern Punjab. In Balochistan, management experience, planning, professional advice, education, marketing are significant for the success/failure of SME’s.
 Implications/Originality/Value: Thus, this study adds value to the knowledge to enhance understanding in “why some businesses succeed and others fail” by using Lussier’s Model. The results of the study assist policymakers in developing the programs that enhance the SME’s promotion, establishment, and development.