How can the value chain and supply chain of SMEs and micro-businesses facilitate the development of the economy of Pakistan?

The study is focused on the need to investigate value chain and supply chain of SMEsand micro-businesses facilitating the economic development of Pakistan. Literatureshows that SMEs are the core contributors to Pakistan's employment level. However, asignificant gap was explored in previous studies regarding the SMEs of Pakistan and theirvalue chain processes. Though various studies uncover the different aspects of valuechain, these are not explicitly related to Pakistani Automobile and Petrochemical firms.Thus, the research aims to explore these sectors' value chain attributes to eradicateexisting research gap. Further, research objectives are designed to explore thecontribution of these sectors to Pakistan's economic development. The sustainablepractices of SMEs, profit-sharing mechanisms, and the willingness of large companies tocollaborate with SMEs are other prominent attributes that surround the objectives of thisresearch.Qualitative data collection methods were utilised in the study to accumulate in-depthfindings. Interviews were used as the most appropriate strategic tool to accumulate datafrom participants of selected SMEs in Automobile and Petrochemical industries. Thematicanalysis is deployed in a data analysis process, and responses are coded using a Vivocoding scheme. The findings of this study indicate the constructive and significant role ofSMEs and Microbusinesses in cultivating a supply chain and value chain of the selectedAutomobile and Petrochemical Industries of Pakistan. Results are revealing limitations ofSMEs such as the lack of appropriate use of technology, lack of resources, and financialsupport, besides a few other key areas. Results of qualitative thematic analysis resultsalso revealed that despite these disadvantages, the collaborations of large firms withSMEs and Microbusinesses had facilitated their organisational performance througheffective use of expertise, cost advantage, knowledge sharing, and skills development.The overall research findings concludes the impact of SMEs and microbusinesses onPakistan's economic state is also analysed with the help of participants' viewpoints. Theseviewpoints show that SMEs and MSMEs can contribute to economic stability in Pakistanby influencing GDP level, employment growth, and bringing more dollar remittances tothe country.Moreover, the research recommends further in-depth exploration of this area, andinvestigators have numerous future research options. It is necessary for prospectinvestigators to conduct studies on a similar topic by eliminating the methodologicallimitations of this research. In this way, a better picture of Pakistani SMEs and their valuechain operations can be portrayed in the literature. The research recommends strategiccontributions from policymakers. They should initiate favourable policies for SMEs whichcan include easing regulatory burdens, business registration process, and access ofmicro finance. The government can contribute with their strategic initiatives of PPPs,where SMEs’ collaboration can be mandated for Public sector large-scale firms. SMEscan use these large-scale business collaborations for the improvisation of their valuechain operations. The research recommends that SMEs, microbusinesses and largeenterprises enter value chain operations to improvise cost reduction, quality, procurementneeds, product differentiation, and other factors. Automobile SMEs or MSMEs arerecommended to shift from electric to hybrid-style vehicles for catering reductions inwaste and CO2 emissions. Petrochemical SMEs or MSMEs are recommended to gainassistance from large-scale firms to design a proper material recycling process forsustainability needs. The implications of the study portray a positive social change in thisarea. This can be grounded in improvements in the value chain of SMEs in terms ofemployment levels, poverty, and other positive changes in the economic development ofPakistan.