EMPOWERING COMMUNITIES THROUGH ENTERPRISE: A QUALITATIVE ANALYSIS OF SMES IN EMERGING ECONOMIES

Abstract

Particularly in rural areas where formal employment is limited, Small and Medium Enterprises (SMEs) have become major engines of economic development and social stability in developing nations. This paper investigates how SMEs help to lower poverty and unemployment in Khairpur and Sukkur's rural areas in Sindh, Pakistan. Though systematic obstacles still impede their full potential, especially in disadvantaged areas, SMEs are increasingly acknowledged as engines of inclusive development. The study issue focusses on the lack of knowledge of how locally rooted SMEs function under structural restrictions and what factors allow them to produce sustainable livelihoods. Data was gathered from 30 people, including SME owners, staff members, community members, NGO workers, and microfinance representatives—using semi-structured interviews and field observations under a qualitative exploratory methodology. NVivo tools were used for thematic analysis to find reoccurring themes on access to financing, gender involvement, infrastructure gaps, and employment generation. The results show that SMEs are a vital source of income and employment for rural families, hence lowering reliance on agriculture and urban migration.  SME development and sustainability are greatly hampered by access to credit and infrastructural constraints including power outages and subpar transport. Drawing on these findings, the study recommends increasing rural entrepreneur-focused microfinance and business training as well as enhancing infrastructure services including digital access and energy. These actions can improve the ecosystem for rural SMEs and enable them to help lower unemployment and poverty in Pakistan's developing economy.