Abstract:
The Small and Medium Scale Enterprises/Industries (SMEs) are functioning as a lifeline in informal sector in Sri Lanka and Pakistan due to their significant contribution to overall economy in terms of employment, exports, tax income, innovation, equitable income distribution, social stability, domestic resources usage and regional development. However in both countries lack of first hand information is the main obstacle to understand various issues related to the growth and development of SMEs. The main data sources for this study are the latest national level Industry Census in both countries. The main objective of this paper is identification of issues related to the SMEs with special emphasis on definition and future research direction aspects. The final outcome of this paper is to show the issues emerging from national level SME data bases in Pakistan and Sri Lanka to formulate coherent policies and strategies to develop SMEs to their full potentials to accelerate economic growth and development in both countries. The issues raised and research directions set by this paper can be used to any South Asian country to develop their informal sector SMEs to full potentials.
