Assessing the Effectiveness of Local and International Food Safety Standards in Small and Medium‐Sized Enterprises (SMEs) of Pakistan

Abstract

Pakistani small and medium‐sized enterprises (SMEs) have an important role and contribute less than other countries, yet their significance cannot be denied. The SME sector is confronted with multiple problems, including export issues because of the trust factor and least knowledge of the latest food safety standards, which have made it difficult to contribute to the GDP of the nation. Various standards such as Food Safety, HACCP, GGAP YUM GAP, MacDonald’s GAP, ISO 9001, and ISO 14001 are being implemented in Pakistan for decades. This study was designed to highlight the critical issues of Pakistani SMEs in adopting management systems, i.e., food safety management systems. Data from 107 SMEs from different fields (beverages, baking, meat, postharvest processing, etc.) of Pakistan were collected through a detailed questionnaire and fed to SPSS V 26.0 for statistical illustration and articulation of the results. In this study, SME company profiles were analyzed and showed that 43% had 6–20 employees, 78.5% were manufacturers, and 68.2% were in business for 7–15 years. The focus was on sales growth (35.5%), profit growth (38.3%), return on assets (42.1%), gross revenues (47.7%), net cash flow (46.7%), customer satisfaction (47.7%), and customer satisfaction relative to competitors (46.7%). A total of 21.5% of SMEs implemented local standards, 23.4% implemented international standards, and 54.2% implemented both local and international standards. Certification benefits included establishing an effective system (62.6% agreed), understanding roles and responsibilities (76.6% agreed), and more efficient documentation (60.7% agreed). However, 29.9% and 24.3% of respondents found international standards such as FSSC 22000 and BRC challenging to apply in local organizations due to language and cost barriers. Above all, the current study implies the dire need for the development of Pakistan’s food safety management system (PFSMS) standard. The PFSMS should be easy to understand, low in cost, and highly applicable in different sectors of the SMEs in Pakistan.