Global challenges for SMEs in Sri Lanka and Pakistan in comparative perspectives

Abstract

The Small and Medium Scale Enterprises/Industries (SMEs) Junction as a lifeline ill informal sectors of Pakistan and Sri Lanka due to their immense contribution ill areas such as employment generation, exports, equitable income distribution. social stability, efficient domestic resources usage and regional development. However, a large number of SMEs in both countries are struggling to survive in today's global competitive market. Their sustainable growth is threatened by [he impact and challenges of rapid globalization. Absence of any networking and cooperation among the SMEs and lack of linkages with large scale industries have aggravated these problems. In spite of the various policy reforms, establishment of SME related apex bodies, incentives and assistance offered by the national governments in both countries, SME sector has suffered in many fronts. The outcome of this paper is to identify coherent policies and strategies to develop SMEs to their full potentials both in Sri Lanka and Pakistan under this intense globalization move.