Obstacles to the Growth of Small Software Firms in Islamabad

Naqeeb Ur Rehman
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Naqeeb Ur Rehman: Lecturer in Economics, Hazara University Manshera, Pakistan.

Indian Journal of Commerce and Management Studies, 2014, vol. 5, issue 2, 47-52

Abstract: This study investigated the relationship between long terms obstacles and firm’s labour productivity. A survey method was used to gather data from 69 small and medium-sized software firms in Islamabad region of Pakistan. Factor and multiple regression analysis were conducted to examine the relationship between obstacles and labour productivity. The results of the study reveal that small firms have higher labour productivity than large firms because of their internal flexibility. Nevertheless, obstacles such as shortage of skills generally, competition, keeping staff and regulations showed negative impact on the firm’s labour productivity. The findings of this study suggest that these small software firms require specific policy instruments to remove such obstacles for higher firm labour productivity.

Keywords: Labour productivity; Obstacles; SMEs. (search for similar items in EconPapers)
Date: 2014
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