The Impacting Factors on the Growth of Small and Medium Enterprises in Afghanistan
Small and medium-sized enterprises (SMEs) in Afghanistan constitute a vital sector of the economy, playing a significant role in its growth, development, and employment generation. However, the success or failure of these businesses depends on various factors. The research aims to be practical, employing a descriptive-survey method with quantitative data analysis using SPSS26 software.
The study’s population comprises employees, owners, and stakeholders from two provinces of Afghanistan: Sar-e-pol and Jowzjan. The questionnaire was administered to 38 respondents from Sar-e-pol and 62 from Jowzjan.
The influential factors on the development of SMEs in Afghanistan, focusing on construction companies in Sar-e-pol and Jowzjan provinces, are categorized into internal (organizational) and external (environmental) factors. Internal factors include technology, marketing innovation, human resources, company size and structure, and communications. External factors encompass competition, financial resources, supportive laws, and infrastructure. The impact level of each factor is specified.
Six research questions are posed, excluding the external (environmental) factors dimension of supportive laws and infrastructure. These dimensions and indices are considered ineffective in the development of SMEs. Neglecting the influential factors on the development of SMEs in Afghanistan leads to their recession and hinders their growth. Expansion into foreign markets and exports, which are avenues for growth, seem impossible without considering the development of Afghan SMEs. Moreover, the examined factors are deemed important for addressing the challenges of new businesses and are effective in overcoming them.
Keywords: Small and Medium-sized Enterprises (SMEs), internal factors, external factors, Afghanistan, development.