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11
Transcript
Effect of Energy Crisis on SME's in
Pakistan
Abstract
Abstract & Intro
- Electricity is an imperative need of the society
- Contributes directly to economic growth
- SME's also play a pivotal role economic development
- Study investigates the impact of electricity shortage on SME's in Pakistan
- Results of this study; Operations of SME's were severely jolted by power crisis
Introduction
- Organizational behavior changes due to negative situation such as crisis
- Pakistan is not producing enough electricity
- SME sector considered to be backbone for economy
- Constitutes 90% of all business sectors
- 77% of employment of industrial sector generated from this sector
Intro
Contd
- Contribution to GDP is 40%
- Sector very important, but still not given the the required power
- SME industry focuses on certain obstacles, major one is energy crisis
Contd
Usage by Sector
Usage
Percentage
Concluding
Conclude
- Electricity shortage leads to higher costs of production
- Leads to decrease in factor of Production
- Higher costs of production leads to Inflation
- Decrease in Factor of production leads to Lower profits
Literature Review
Literature Review
- Change in organization is derived severely by crisis, either internally or externally
- Rehman (2013) stated that SME's cannot bear the expenses of generators
- SME's shutting their plants down, leading to reduced output
- Medium Enterprises reduce their shifts, leading to unemployment
- Even bigger firms shift to other nations, causing various problems
Methodology
Methodology
- Standardized Questionnaire for Primary Data
- Research Questions:
- Impact of Electricity Crisis on SME's?
- Changes in their consumption behavior?
- Role of suppliers (WAPDA) in overall scenario
- Questionnaire designed using 5 Likert Scale
- Consisted upon 23 Questions
- Discussed role of WAPDA & Impact of Crisis
- Total of 107 responses received
Dependence
Financial Impact of Crisis
Awareness
Graphical Representation
Dependence On Electricity Supply
Awareness of Electricity Supply
Losses Due to Power Shortage
Losses
Concluding
Conclude
- 66% agreed on crisis hitting firms Financially
- 84% Companies had losses
- Some businesses are closed
- Many are near to shut down
- Consumption depending upon necessity
- Many companies having backup
- Not relying on WAPDA
- Saving large sums of money for future investments in power generation
Conclusion
- Power shortage is one of the least focused & most important issue faced by Pakistan
- It effects almost every industry
- Many businesses are now a days shutting down due to power shortage & higher costs
- Others are shifting price
burdens onto public
Conclusion
&
Solution
Solution
- Reducing power shortage through investment in lower sector
- Use renewable means to produce electricity
- It would:
- Increase supply with sustainable future
- Decrease cost of production
- Increase employment rate
Solution
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