Abstract
This study empirically examines the performance and obstacles of SMEs in BRICS economies. For empirical evaluation, Ordinary Least Square technique has applied by taking the time period between “2000-2017”. Performance has taken as dependent variable and obstacles; firm characteristics and global factor have taken as explanatory variables. Estimated results show that ownership and size have a positive impact on SMEs growth and performance. Age has a negative and significant impact on the performance and growth of SMEs. Technology has a positive and significant impact on the performance of SMEs. Obstacles i.e. courts, crime, access to finance, practices of competitors and electricity has a negative and significant impact on the performance of SMEs. Access to land, infrastructure and workforce has a positive and significant impact on SMEs performance. It becomes very important for the policymakers or investigators to pay attention towards making SMEs more competent, capable and productive in order to attain the goal of sustainable development and progress.
Highlights
In the 20th century, SMEs had been seen the pillar for the growth process of countries and have equal importance for both the developing and developed world
Major theories had been developed for the obstacles of SMEs, i.e. financial constraint, competition, corruption, political instability and high cost of production but these theories had been slightly concerned with the influence of the growth pattern of SMEs in BRICS countries
To identify the obstacles which impact more on the performance of SME's countries, this study has developed a general mathematical model
Summary
In the 20th century, SMEs had been seen the pillar for the growth process of countries and have equal importance for both the developing and developed world. SMEs are supposed as a significant part of a vibrant and knowledge-based economy. The whole period of the 20th century was occupied by SMEs including the development of economic theories, enhancing the GDP and economic growth. Small and medium enterprises have attracted significant attention of researchers because of their importance and contribution to the economy. The groundwork of SMEs can be traced from the work of (Subrahmanya, 2015) who investigated that small firms are "entrepreneurial" in nature and positively contribute towards sales growth as compared to the mature and bigger firms
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