Abstract

Purpose: The study aims to comprehensively explore the challenges confronted within the manufacturing SMEs domain in Yemen and gain a well-rounded understanding of the prevailing circumstances. Approach/Methodology/Design: This study employs a qualitative and descriptive research methodology to gain sufficient insight into the realm of small and medium enterprises in Yemen, characterized as a lower-income economy. The study draws upon publicly accessible secondary data concerning the manufacturing SMEs sector. Findings: The study found that there are two main categories of challenges faced by small and medium enterprises in Yemen: obstacles and challenges that can be solved by firms and companies and challenges and obstacles that the government can solve. Practical Implications: Hurdles prevent Yemeni SMEs from digitizing their business processes, and progress toward digitalization necessitates enterprises overcoming such barriers by augmenting such initiatives with the necessary resources and infrastructure. Managers, owners, and policymakers can benefit from the research outcome with respect to strategy adoption for better business performance. Originality/value: The study adds to the body of knowledge by presenting evidence that sheds light on the actual hurdles faced by SMEs in order to have sufficient insight into any possible opportunities for developing their performance and enhancing their survival.

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