Identifying prosperity characteristics in small and medium-sized enterprises of Pakistan: firm, strategy and characteristics of entrepreneurs
Journal of Asia Business Studies
ISSN: 1558-7894
Article publication date: 29 June 2023
Issue publication date: 18 January 2024
Abstract
Purpose
The link between SME performance, growth and development is well established; however, the characteristics of SMEs that allow firms to be successful in the long run in an underdeveloped country context, i.e. Pakistan, are still unclear. This paper aims to bridge this gap by identifying the SMEs’ characteristics that set them apart from their rivals and become successful.
Design/methodology/approach
This study uses Storey’s development framework to identify the SMEs’ characteristics. Data is gathered using the case study method from SMEs with a metropolitan context in Pakistan. A narrative methodological framework was used during the data gathering and analysing stages.
Findings
Findings of this study indicate that the prosperity of SMEs in Pakistan is dependent on a combination of characteristics, including entrepreneurial characteristics of owner–managers, knowledge of business operating models, social networks and relationship building and innovation in business style. Additionally, other factors such as governance structure, strategic planning of market diversification and export characteristics also influence the prosperity of an SME. These findings may have several important implications for key stakeholders, including entrepreneurs, SMEs and policymakers in the government.
Originality/value
This research provides evidence about factors that can help an SME to become successful in uncertain situations surrounding a business environment. Theoretically, the contribution of this research is that it demonstrates that entrepreneurial characteristics and the effective leadership style of owner–managers can help SMEs achieve prosperity in external unforeseeable situations.
Keywords
Acknowledgements
The authors would like to express their gratitude to the entrepreneurs and managers of the firms who contributed in this research by sharing their experiences and wisdom with them. They would also like to thank the Ministry of Trade and Commerce, SMEDA and the Regional Chambers of Commerce for providing a valuable list of SMEs for data collection procedures.
Citation
Nazir, M.A., Khan, R.S. and Khan, M.R. (2024), "Identifying prosperity characteristics in small and medium-sized enterprises of Pakistan: firm, strategy and characteristics of entrepreneurs", Journal of Asia Business Studies, Vol. 18 No. 1, pp. 21-43. https://doi.org/10.1108/JABS-09-2022-0309
Publisher
:Emerald Publishing Limited
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