Success vs Failure Prediction Model for SMEs: A Study of South Punjab and Baluchistan

This paper examines the factors that lead to success or failure of Small Medium Enterprises (SMEs) operating in South Punjab and Baluchistan. There is lack of studies that have conducted in this setting particularly in Pakistan.. Using quantitative approach the data was collected through questionnaire adapted from Lussier Model to measure the success and failure factors of SME’s. The data was analyzed by using e-views to examine the reasons for the success or failure using logistic regression statistical analysis. The result of this study showed that proper business planning, employee staffing, adequate capital inflow and partnerships are important for the viability, management experience, and planning play important role for the success of SMEs. The findings of this study help the SMEs owner, managers, policy makers, practitioners and other professional advisor to improve the success of SME’s by focusing on proper planning, professional advice, relevant industry experience, education, staffing, age, and to avoid failure by maintaining and improving proper record keeping and financial control