Impact of operating obstacles on the total annual sales of SME's in Afghanistan

Faculty Sponsor

Peter Sedrak

College

Other

Department/Program

M Sc in Analytics and Modelling

Presentation Type

Poster Presentation

Symposium Date

Summer 7-23-2021

Abstract

The purpose of this study is to find out the effect of obstacles in the establishment's total annual sales of small medium enterprises (SME's). SME's are the enterprises which are mostly start-ups and have the number of employees and revenue less than threshold. The paper deals with the data from SME's to study the obstacles in the operating activities which effects the sales. The dataset is taken from the world bank survey of Afghanistan in 2013. The variables selected from the dataset as obstacles are power outages, access to finance, political instability, corruption, telecommunication, transport, customs and trade regulations. Paper uses the regression analysis to analyse the data and provides a relation between the independent and the dependent variable. It further describes the rationale behind the relation between the variables. As expected, when some of the obstacles like corruption, telecommunications and custom and trade regulation are very severe reduces the annual sales because it increases the functional issues of an enterprise. Therefore, this shows a negative relationship between these obstacles and the enterprises total annual sales. Whereas, when the remaining obstacles like power outages, access to finance, political instability and transport are severe, increases the annual sales which is unexpected because it should lead to loss of production. This shows a positive relationship between these obstacles and the enterprise's total annual sales. The rationale behind it might be the size of an enterprise. It might be so small that obstacles did not affect the total annual sales of an enterprise. There will be more SME's emerging in fast ratio in the developing countries and hence the study of obstacles becomes more important.

Biographical Information about Author(s)

I am bachelors in economics and pursuing my masters in analytics and modelling. I did a similar research for different country, India, and then being from developing country I was fascinated how these small medium enterprise supports the economy of developing country. Therefore, I was very curious to do more detailed research for the other developing country and I choose Afghanistan as its small medium enterprise contributes towards the 50% of the country's economy. Whereas the findings in this research was different and there I realized that the obstacles affecting output even varies in the developing countries. It is a very interesting topic and will further work on the research for developed country.

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