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USMAN SARWAR
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Hailey College of Commerce

The role of SMEs Resilience during crisis: A resources-based view


USMAN SARWAR, PhD Scholar (HCC, PU)

Background information
Small and medium enterprises (SMEs) are the backbone of an economy (Soomro et al., 2019).
 share ninety percent (90%) of total existing businesses (Khan, 2017).
 provide around forty percent (40%) support to Pakistan's GDP (Baig, 2019).
Apart from their contribution, SMEs tend to be riskier
 Small size.
 Resources constraint,
 Exposure to risk increases with an adverse economic event.
The covid-19 outbreak has increased SMEs' risk.
Global evidences:
 2/3rd SMEs facing cash flow problems (OECD, 2020).
 Up-to 80 % decline in operational activity (Wijaya, 2020)
Local evidence:
 95% businesses experienced a reduction in operations (SMEDA, 2020)
 Unemployment rate increased from 5.8% to 11.56% (Economic survey of
Pakistan 2019-20)
 decline in liquidity position

Research questions

Research Design

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