Mediating Role of Opportunity Recognition between Credit, Savings and Performance of Micro and Small Enterprises in Pakistan

Syed Hussain Haider; Muzaffar Asad; Minaa Fatima; Haris Atiq

Authors

Syed Hussain Haider Strategic Management Division, Akhuwat, Lahore, Pakistan
Muzaffar Asad School of Accounting and Finance, Faculty of Management Studies, University of Central Punjab, Lahore, Pakistan
Minaa Fatima Planning & Development Department, Government of Punjab, Lahore, Pakistan
Haris Atiq School of Accounting and Finance, Faculty of Management Studies, University of Central Punjab, Lahore, Pakistan

Keywords:

Microfinance, credit, savings, micro and small enterprises, entrepreneurship, opportunity recognition

Abstract

MSEs have a significant role in economic development of any country but certain obstacles such as poverty, unemployment, low household income, and societal discriminations in developing countries hinder the performance of MSEs. The purpose of this study is to identify the mediating role of opportunity recognition between credit, savings, and performance of MSEs. The study focuses on the importance of opportunity recognition between credit, savings, and performance of MSEs in Pakistan. The study employed survey research and collected the data from the owners of MSEs that are operating in Pakistan. A structured questionnaire was adopted to collect the data using a seven point Likert scale. The findings of the study revealed that credit and savings have a significant impact over the performance of MSEs. Likewise, opportunity recognition mediates the relationship between credit and performance of MSEs and savings and performance of MSEs. The findings are important for the owners of MSEs and especially for the policy makers who have to develop the policies regarding microfinance and growth of MSEs in the country.