Factors Influencing SMES Sustainable Growth in the Developing Context: A Conceptual Study
Abstract
In the contemporary world, Small and Medium Enterprises (SMEs) remain the crucial mechanism for promoting economic growth and development. As such, it is imperative to look into factors that enhance SMEs' sustainable growth. This study thus examines internal and external factors influencing SMEs' sustainable growth. The internal factors used in the study comprise HR practices such as training and development, rewards and compensation, and performance appraisal while the external factors comprise government policies and access to finance. Despite the importance of HR practices (i.e., training and development, rewards and compensation, and performance appraisal), government policies and access to finance, researches that integrate these concepts with SMEs' sustainable growth are very limited, especially in the developing context. Based on the extensive literature view, this study has found significant links between HR practices, government policies, access to finance, and SMEs' sustainable growth by developing a conceptual model for empirical validations. The study concludes that HR practices, government policies, and access to finance enhance SMEs' sustainable growth. Finally, the study provides recommendations, limitations, and directions for future research.
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