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

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.