Business Growth and Sustainability: The Case of SMEs in the 8 Districts of Eastern Highlands Province, Papua New Guinea

Abstract

 This study identified the dynamics to business growth and financial sustainability of small and medium enterprises (SMEs) in the 8 districts of Eastern Highlands Province of Papua New Guinea. Eighty small and medium businesses were surveyed using questionnaire consisting of dichotomous questions and Likert scale. The primary data were analyzed using rank, percentage, weighted mean and standard deviation. Chi-square test of independence was utilized to determine the relationship of the intervening variables with business growth and financial sustainability. The leading element to business growth and sustainability perceived by SMEs is sales while the leading barrier is on business operations. Technology for innovation, automating business process, forging partnerships and outsourcing and customers’ retention posed as great challenges. Chi-square test of independence discloses no significant relationship between the independent variables with the business growth and stability of SMEs in EHP. This study suggests that in achieving the aspirations for SMEs, policy makers, private voluntary organizations and SME’s sector should work hand-in-hand in seriously evaluating the SMEs complexity issues