- Research Article
- 10.47175/rissj.v6i4.1231
Factors Influencing the Growth of Small and Medium Enterprises (SMEs) in Afghanistan: A Case Study of Parwan Province
- Oct 31, 2025
- Randwick International of Social Science Journal
- Mohammad Mahfoz Faqiri + 2 more +2
Small and Medium Enterprises (SMEs) serve as pivotal engines of sustainable economic development, employment generation, and innovation diffusion. Their lean organizational structures, operational flexibility, and relatively low capital requirements render them highly effective in poverty alleviation and social empowerment. In Afghanistan, promoting SME growth constitutes a strategic pathway for economic reconstruction and societal resilience. This study employs a descriptive-survey design to investigate the key determinants of SME expansion in Parwan province. Data were collected from 322 active enterprises and analyzed through Exploratory Factor Analysis (EFA). The results highlight eight principal growth drivers: innovation and production productivity, workforce competencies, institutional support and legal framework, managerial and leadership capabilities, technological and logistical infrastructure, financial performance and management, human capital and technological capacity, and preparedness for external competition. Targeted enhancement of these factors can equip policymakers with actionable insights to formulate evidence-based strategies, fostering sustainable and resilient SME driven economic growth in the region.
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