EVALUATION OF ACCESS TO FINANCE, TRAINING, AND GOVERNMENT POLICIES ON ENTREPRENEURIAL DEVELOPMENT AND SMALL BUSINESS SUSTAINABILITY

Abstract

Small and medium-sized enterprises (SMEs) serve as critical drivers of economic growth, employment, and innovation, yet they face persistent challenges in achieving long-term sustainability. This study evaluates the combined impact of three key pillars access to finance, entrepreneurial training, and government policies on entrepreneurial development and small business sustainability, with particular attention to emerging economies. Drawing on theoretical frameworks such as the Resource-Based View (RBV), Human Capital Theory, Pecking Order Theory, and the Triple Bottom Line (TBL) approach, the paper examines institutional barriers including information asymmetry, collateral deficits, and the “missing middle” financing gap. It analyzes innovative financing mechanisms such as Fintech credit scoring, supply chain finance, equity crowdfunding, and sustainability-linked loans. The role of training is explored through psychological resilience programs, action-oriented training, and financial literacy initiatives, which enhance entrepreneurial capacity and risk management. Government policies are assessed with emphasis on tax incentives, regulatory simplification, and enabling ecosystems, using Pakistan as a contextual case study. The analysis highlights the synergistic effects of these pillars, amplified by digital transformation and technologies like AI, blockchain, and e-commerce, which improve resilience and support green transitions. Findings underscore that integrated support systems combining accessible finance, targeted training, and coherent policies are essential for reducing SME failure rates and promoting sustainable development. The study offers practical recommendations for policymakers and practitioners to foster inclusive entrepreneurial ecosystems.