Development of Local Economy through the Strengthening of Small-Medium-Sized Forest Enterprises in KPK, Pakistan

Muhammad Zada, Shagufta Zada, Mudassar Ali, Yongjun Zhang, Abida Begum, Heesup Han, Antonio Ariza-Montes and Alejandro Vega-Muñoz
Additional contact information
Muhammad Zada: Business School, Henan University, Kaifeng 475000, China
Shagufta Zada: Ideological and Political Education Department, School of Marxism, Northeast Forestry University, Harbin 150040, China
Mudassar Ali: School of Management, Harbin Institute of Technology, Harbin 150001, China
Yongjun Zhang: Business School, Henan University, Kaifeng 475000, China
Abida Begum: Ideological and Political Education Department, School of Marxism, Northeast Forestry University, Harbin 150040, China
Heesup Han: College of Hospitality and Tourism Management, Sejong University, Seoul 05006, Korea
Antonio Ariza-Montes: Social Matters Research Group, Universidad Loyola Andalucía, C/Escritor Castilla Aguayo, 4, 14004 Córdoba, Spain
Alejandro Vega-Muñoz: Public Policy Observatory, Universidad Autónoma de Chile, 425 Pedro de Valdivia Avenue, Providencia, Santiago 7500912, Chile

Sustainability, 2021, vol. 13, issue 19, 1-17

Abstract: Small–medium-sized forest enterprises (SMFEs) have historically played an essential role in developing countries’ economies worldwide because most businesses start as small businesses, and government support and knowledge-based recourse are critical to the sustainable development of SMFEs and local economies. The current studies examined the effects of the Khyber Pakhtunkhwa (KPK) government’s (Pakistan) support (GS) and entrepreneur knowledge (EK) on the development of small–medium-sized forest enterprises (SD) and their contribution to the local economic development (LED) of the region. Primary data were collected from 350 SMFEs in KPK, Pakistan. The model was developed by using a structural equation model (SEM) to investigate the impact of GS, EK, and SMFEs on the growth, SG, and sustainable development of the local economy. This study concludes that EK and GS could increase growth in SMFE businesses and contribute to LED. On the other hand, crediting loans and equipping businesses with training could not directly affect SMFE businesses and LED growth. The government needs to use natural resources and the SMFE communities as leaders among suppliers in the local market for the sustainable development of LED and SMFEs, alongside focusing on preserving and taking initiatives to develop. This study discusses several practical implications for policymakers, business owners, and academics, with recommendations for future research.

Keywords: SMEF development; local economic development; government support; entrepreneur knowledge; KPK; Pakistan (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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