TABLE OF CONTENTS

TITLE PAGE i

CERTIFICATION OF THESIS WORK ii

ABSTRACT iii

ACKNOWLEDGEMENT iv

TABLE OF CONTENTS v

LIST OF TABLES vi

LIST OF FIGURES vii

LIST OF APPENDICES viii

LIST OF ABBREVIATIONS ix

CHAPTER ONE – INTRODUCTION 1

1.1 Background of Study 1

1.2 Problem Statement 3

1.3 Research Questions 4

1.4 Research Objectives 4

1.5 Significance of the Study 5

CHAPTER TWO – LITERATURE REVIEW 6

2.1 Theoretical Framework 6

2.2 Key Concepts and Definitions 8

2.3 Empirical Studies 10

2.4 Hypotheses Development 13

2.5 Gaps in the Literature 14

2.6 Contribution of the Research 15

2.7 Organization, Summary, and Integration of the Research 16

CHAPTER THREE – RESEARCH METHODOLOGY 17

3.1 Introduction to Research Methodology 17

3.2 Research Design 18

3.3 Data Collection Methods 19

3.4 Sampling Strategy 20

3.5 Data Analysis Techniques 21

CHAPTER FOUR – RESULTS AND ANALYSIS 23

4.1 Data Preparation and Screening 23

4.2 Descriptive Statistics 24

4.3 Correlation and Regression Analysis 25

4.4 Moderation Analysis 27

4.5 Visualization and Summary of Results 28

CHAPTER FIVE – DISCUSSION & RECOMMENDATIONS 30

5.1 Summary of Key Findings 30

5.2 Interpretation of Findings in Context 31

5.3 Implications for Policy and Practice 32

5.4 Study Limitations 34

5.5 Recommendations for Future Research 35

REFERENCES 36

APPENDICES 38

Abstract

This research proposal aims to investigate the critical challenges affecting the performance
of small and medium-sized enterprises (SMEs) in Afghanistan. In a fragile post-conflict
economy, SMEs play a central role in employment, local investment, and national economic
recovery. However, despite their importance, many SMEs continue to struggle due to
structural barriers. This study focuses on three key external factors: infrastructure
limitations, informal financing practices, and political instability. Using a quantitative
research method, data will be collected through an online survey targeting SME owners and
managers across Afghanistan. The research will test several hypotheses and analyze how
each of the three variables impacts SME performance. Additionally, the study will examine
whether informal finance plays a moderating role between infrastructure and business
outcomes. The findings are expected to contribute to both academic knowledge and
practical policy recommendations aimed at improving SME support frameworks in fragile
states. This study offers timely insight into Afghanistan’s private sector challenges and
provides a roadmap for stakeholder action and future research.

Keywords: SME performance, Afghanistan, infrastructure, informal finance, political

instability, quantitative research, fragile economy

Acknowledgment

I would like to express my sincere appreciation to my respected supervisor, [Insert

Supervisor's Name], for their guidance, encouragement, and continuous support throughout
this research proposal.

Their thoughtful feedback and academic insight have played a key role in shaping this work.

I am also grateful to the SME professionals and business owners who contributed valuable
time and input through survey participation.

Finally, heartfelt thanks go to my family and friends for their patience, motivation, and
consistent support during the course of this research.
Chapter 1: Introduction

Background of the Study

Afghanistan has faced many years of war and political problems. After the change in
government in 2021, the country’s economy became even weaker. The World Bank (2024)
reported that Afghanistan’s real GDP dropped by about 26%, and growth has been slow
ever since. As of 2023, about half of the people in Afghanistan live in poverty, which shows
how serious the situation is. In this tough environment, it is important to look at how
businesses, especially small ones, are managing to survive.

Small and medium-sized enterprises (SMEs) play a very important role in Afghanistan’s
economy. Because large industries are struggling and the government institutions are weak,
SMEs and small farmers have become the main support for the economy (USAID, 2022).
These businesses help people earn a living and provide many jobs. However, even though
they are important, SMEs in Afghanistan face many problems that stop them from growing
or even surviving.

One major issue is poor infrastructure. Many parts of the country do not have reliable
electricity – only around 40% of people have regular access to power (World Bank, 2024).
Roads are in bad condition, and internet service is also limited. This makes it hard for
businesses to produce goods, transport them, or reach customers. Another challenge is
finance. Afghanistan’s banking system has nearly collapsed, and many business owners now
use hawala, which is an informal money transfer system. While it helps in some ways,
hawala does not offer business loans or digital banking, which limits financial growth
(SIGAR, 2023).

On top of this, political instability continues to harm the business environment. Rules
change often, and the overall situation remains uncertain and insecure. This discourages
investment and makes it hard for businesses to plan ahead (World Bank, 2023).

Because of these problems, there is an urgent need to understand what is holding back
SMEs in Afghanistan. Some reports have pointed out that better infrastructure, improved
access to finance, and more support for businesses are key to rebuilding the economy.
However, not many studies have looked at how all three of these issues – infrastructure,
informal finance, and political instability – affect SMEs together, especially after the 2021
changes. This study aims to fill that gap. By focusing on these challenges, the research will
help us better understand the current situation and explore ways to improve SME
performance in Afghanistan.

Problem Statement
Small businesses in Afghanistan are dealing with serious problems that limit their ability to
grow and survive. The main issues are poor infrastructure, limited access to formal finance,
and political instability. These factors affect business operations across the country. For
example, the Asia Foundation (2022) found that over 60% of SME owners say that
electricity problems and poor roads make it hard for them to run their businesses. Many
also face internet issues, which reduce productivity and make it hard to reach customers.

In terms of finance, the formal banking system is barely functioning. Since 2021, most
business owners have had to rely on informal systems like hawala. But hawala does not
offer business loans, digital payments, or long-term credit. This makes it difficult for SMEs
to grow or invest in their future (SIGAR, 2023).

Another big issue is the country’s unstable political environment. There is ongoing
insecurity, changes in regulations, and lack of legal protection for businesses. According to
the World Bank (2023), 36% of Afghan businesses reported that sudden policy changes or
fears of property loss disrupted their operations. This makes it hard for entrepreneurs to
plan, find investors, or build long-term strategies.

All these challenges are having real effects. As of 2023, more than one-third of Afghan
businesses are still working below their pre-2021 level, and over 8% have shut down
completely – many of them women-led (World Bank, 2024). If these problems continue, the
country could face deeper economic trouble, with more job losses and fewer business
opportunities.

Research Questions

How does weak infrastructure affect the operational performance and market access of
SMEs in Afghanistan?

In what ways does dependence on informal finance influence the growth and financial
sustainability of Afghan SMEs?

How does political instability disrupt SME operations, investment planning, and long-term
business survival in Afghanistan?

Research Objectives

Objective 1:
To examine how infrastructure-related challenges such as electricity shortages, poor road
networks, and limited internet access impact the performance of SMEs in Afghanistan.
Objective 2:
To evaluate the effects of informal financial systems—like hawala and community lending—
on the survival, cash flow, and scalability of SMEs operating in Afghanistan.

Objective 3:
To analyze the extent to which political instability, including policy unpredictability and
security issues, undermines SME operations and investor confidence in the Afghan business
environment.

Significance of the Study

This study is important for both practical and academic reasons. For business owners,
especially women entrepreneurs, it will help them understand the main barriers they face.
This can help them take better steps to protect and grow their businesses. For government
officials and policy makers, the research will provide evidence they can use to improve
infrastructure, expand access to financial services, and create a more stable business
environment.

International donors and development partners can also benefit from the findings. The
results can help them decide where to focus their support – for example, funding road
repairs, energy access, or small business loans. This can make a real difference in helping
SMEs recover and create jobs in Afghanistan (Abdullah, 2021).

From an academic point of view, this study will help fill a gap in the literature. Afghanistan
is a unique case of a post-conflict economy. Studying SMEs here will provide valuable
insights into how small businesses operate under pressure and what helps them survive.
The research can also serve as a useful comparison for other countries going through
similar challenges (World Bank, 2021).

Chapter 2

Theoretical Framework

1. Institutional Theory

Institutional Theory explains how the formal and informal "rules of the game" in a society
influence how organizations behave and perform. The concept, originally proposed by
Douglass North, focuses on how legal systems, regulations, social norms, and customs
create incentives or constraints for businesses (North, 1990). In countries with strong
institutions—like reliable courts, enforceable contracts, and low corruption—firms operate
in a predictable environment, encouraging investment and growth. However, in fragile
states like Afghanistan, formal institutions are weak or missing, and informal mechanisms
such as clan ties, religious councils, or hawala finance networks take over (Orange Corners,
2024). Institutional Theory has been applied in studies across developing countries to
explain why firms succeed or struggle depending on the quality of their external
environment. In such contexts, businesses often navigate institutional voids by relying on
personal trust or local customs instead of legal protections (Keig & Brouthers, 2022).

Despite its usefulness, Institutional Theory has limitations when applied to extremely
unstable countries. It assumes at least a baseline of functioning governance, but
Afghanistan’s recent history includes prolonged state collapse and insecurity. In these
conditions, even informal institutions are under stress. Scholars have noted that
Institutional Theory tends to underplay the impact of violence and political turmoil as part
of the institutional environment (Welter, 2011). For SMEs in Afghanistan, this means that
common assumptions—like businesses depending on consistent rules—may not hold. Many
entrepreneurs have to adapt constantly to regime changes, policy reversals, or outright
lawlessness. In this study, Institutional Theory helps explain how external conditions such
as infrastructure failure and political instability limit SME performance. However, we also
highlight its gaps, especially its inability to fully capture how armed conflict and
institutional breakdowns reshape the business ecosystem. This calls for an adapted version
of the theory that includes security and informal workarounds as central elements.

2. Resource-Based View (RBV)

The Resource-Based View (RBV) offers an internal lens for understanding SME performance
by emphasizing the importance of firm-specific resources and capabilities. Introduced by
Jay Barney, the theory argues that firms gain a competitive edge when they control
resources that are valuable, rare, inimitable, and non-substitutable (Barney, 1991). In the
SME context, these resources may include experienced managers, skilled employees,
proprietary technology, or close customer relationships. Recent studies confirm that
internal capabilities strongly influence SME success across various sectors. For example,
Olarewaju, Tamvada, and McDowall-Emefiele (2024) found that in low- and middle-income
countries, firms that built internal trust and could manage perceptions of corruption were
more likely to perform well despite external instability. This supports the idea that internal
resilience and culture can act as protective tools in uncertain environments like
Afghanistan. In Afghanistan, SMEs with strong internal capabilities—such as flexible
leadership or adaptive strategies—are often more likely to survive market shocks and
political disruptions.

However, RBV assumes a relatively stable external environment where firms can use their
resources effectively. This assumption becomes problematic in a conflict-affected country
like Afghanistan. Even if a firm possesses skilled labor and modern equipment, persistent
power outages or insecurity might render these resources useless. In such settings, context
overshadows capability. As noted by Keig and Brouthers (2022), high corruption and
instability can neutralize the benefits of even the best internal assets. The RBV does not
sufficiently account for how external threats constrain resource deployment. In our study,
RBV helps us understand how some Afghan SMEs continue to perform despite adversity—
mainly due to unique internal strengths. But we also explore its limits by analyzing
situations where environmental barriers—like poor infrastructure or political chaos—
prevent firms from capitalizing on those strengths. Therefore, this study not only applies
RBV but also aims to refine it by highlighting how fragile contexts act as moderators,
sometimes neutralizing the expected benefits of internal resources.

Key Concepts and Definitions

This section defines the key terms used in this study to ensure clarity and consistency.
Where needed, it also shows how different studies may interpret these terms.

1. Small and Medium Enterprises (SMEs)

SMEs are businesses that are smaller in size, usually with fewer employees and limited
capital. In Afghanistan, the Ministry of Industry and Commerce classifies small enterprises
as having 5–19 employees and medium enterprises as having 20–99 employees (Mashal,
2014). The World Bank uses a broader definition based on sales and assets, but this study
uses Afghanistan’s local classification. SMEs in this context include both registered and
informal businesses that operate with limited resources.

2. SME Performance
SME performance refers to how well a business is doing. It includes profit, stability, job
creation, and survival. Some researchers, like Gherghina et al. (2020), look at both financial
performance (like sales and profits) and non-financial outcomes (like innovation and
resilience). In this research, performance mainly means the ability of SMEs in Afghanistan to
stay open, adapt to problems, and grow when possible.

3. Informal Finance
Informal finance refers to money sources outside the formal banking system. In
Afghanistan, this includes hawala networks, borrowing from relatives, and rotating saving
groups. Abdullah (2021) found that most SMEs depend on informal finance because formal
banks are not accessible or trusted. While this makes finance flexible, it also limits long-
term investment and growth.

4. Infrastructure
Infrastructure means the basic services businesses rely on: roads, electricity, water, and
internet. Without reliable infrastructure, SMEs face high costs and delays. For example, only
40% of Afghans have regular electricity access, which directly affects business operations
(World Bank, 2024). Abdullah (2021) also highlights poor road and internet access as key
reasons why many SMEs can’t reach markets or customers.

5. Political Instability
Political instability includes unpredictable leadership changes, weak law enforcement, and
conflict. In Afghanistan, instability increased after the 2021 political shift. This has made it
hard for businesses to plan or trust the system (World Bank, 2023). It also discourages both
domestic and foreign investment, especially in areas outside major cities.

6. Business Environment
The business environment is the overall setting in which firms operate. It includes
government policies, ease of starting a business, corruption levels, and access to services. A
poor business environment makes it hard for SMEs to grow. Abdullah (2021) explains that
Afghanistan’s business environment is very fragile, with frequent rule changes and little
protection for property rights.

Empirical Studies

This section reviews recent studies related to the three core variables of this research:
infrastructure, informal finance, and political instability. Each subsection summarizes key
findings, describes the research methods used, and outlines common trends or differences
across studies.
Many studies show that weak infrastructure harms SME growth. For example, Abdullah
(2021) found that Afghan SMEs face frequent power outages and poor road conditions,
which reduce their productivity. The International Trade Centre (2023) reported that in
fragile countries, over 70% of SMEs cite infrastructure as a major obstacle. Al-Hakimi et al.
(2021), studying Yemen, found that damaged infrastructure disrupted supply chains and
led to business losses. Abdullah (2021) used surveys and interviews with Afghan SME
owners. ITC (2023) based their data on multi-country SME surveys. Al-Hakimi et al. (2021)
used structural equation modeling (SEM) on a sample of manufacturing SMEs. All three
studies confirm that poor infrastructure makes business operations more costly and
unpredictable. They also show that improving infrastructure like electricity and roads
would directly improve SME performance. The pattern is consistent across fragile states.

Abdullah (2021) showed that Afghan SMEs often depend on hawala due to the collapse of
the formal banking system. Mpofu and Sibindi (2022) found that while informal finance
supports quick access to money, it limits large-scale investment. Olarewaju et al. (2024)
found that trust and informal relationships are important for getting funds, especially when
formal institutions are weak. Abdullah (2021) collected data through local case studies.
Mpofu & Sibindi (2022) reviewed over 30 articles using content analysis. Olarewaju et al.
(2024) used regression analysis across data from 20+ low- and middle-income countries.
These studies agree that informal finance helps SMEs survive but not grow. The trend is that
without access to structured credit, businesses cannot scale up. However, informal finance
remains a vital coping tool in fragile settings.
The World Bank (2024) showed that one-third of Afghan businesses still struggle after 2021
due to unstable policies and fear of property loss. Al-Hakimi et al. (2021) found that conflict
in Yemen caused serious disruptions in SME supply chains. Keig and Brouthers (2022)
showed that corruption and political uncertainty lower SME performance in emerging
markets. World Bank (2024) used structured enterprise surveys in Afghanistan. Al-Hakimi
et al. (2021) applied SEM in a conflict context. Keig & Brouthers (2022) used panel data and
regression models. All studies show that instability discourages long-term investment and
business planning. Political risk reduces trust, limits access to finance, and causes business
closures. This pattern is clear across fragile states.

Based on the literature review and theoretical framework, the following hypotheses are
proposed:

H1: Infrastructure quality is positively associated with SME performance in Afghanistan.

SMEs with reliable infrastructure (e.g., electricity, roads) are likely to perform better than
those without.

H2: Access to informal finance is positively associated with SME performance. SMEs that
utilize informal finance networks such as hawala or family loans are expected to perform
better than those that lack financial access.

H3: Political instability negatively affects SME performance. Higher levels of instability are
expected to reduce SME growth, investment, and long-term survival.

H4: Informal finance moderates the relationship between infrastructure quality and SME
performance. The negative impact of poor infrastructure on SME performance will be less
severe for businesses that have access to informal financing.

This research also proposes a conceptual model that explains how external challenges
namely infrastructure quality, informal finance access, and political instability—affect the
performance of small and medium-sized enterprises (SMEs) in Afghanistan. The model
identifies these three factors as independent variables and SME performance as the
dependent variable. Informal finance is also considered as a moderating variable,
particularly in how it influences the relationship between infrastructure quality and SME
performance.

Gaps in the Literature

While many studies have discussed the individual challenges faced by SMEs in fragile states,
there is limited research that combines the effects of infrastructure, informal finance, and
political instability in one comprehensive study, especially in the Afghan context after 2021.
Most past research looks at these issues separately. For example, some studies focus only on
finance, while others focus only on infrastructure or conflict. However, in reality, Afghan
SMEs face all these challenges at once, and the interaction between them remains under-
explored.

Previous studies often rely on general reports or international datasets that may not reflect
the current local situation in Afghanistan. Many of them were written before the 2021
political shift and do not reflect the recent changes in the business environment. Also, some
research uses broad regional analysis, which overlooks country-specific conditions like the
role of hawala in Afghanistan or the exact nature of political insecurity. Another limitation is
that earlier studies tend to suggest general solutions without comparing which problem—
finance, infrastructure, or politics—is the most damaging. This study aims to fill that gap by
using updated evidence and focusing specifically on the post-2021 Afghan SME
environment.

Contribution of The Research

This research contributes to the existing literature by examining how infrastructure,

informal finance, and political instability jointly affect SME performance in Afghanistan after
the 2021 regime change. Unlike earlier studies that focus on just one factor, this research
analyzes all three together, helping to understand how these challenges interact. It also
provides updated insights based on the post-2021 business environment, which most
previous studies do not cover (World Bank, 2024). By focusing specifically on Afghanistan,
the study offers local context and real-time data that can support better decision-making by
policymakers, donors, and SME owners.

What makes this study different is its comparative focus. It not only looks at the impact of
each factor but also compares them to find out which one harms SMEs the most. This helps
to prioritize solutions. In addition, the study uses a structured quantitative method to
gather recent data directly from Afghan SME owners, which adds fresh evidence to the field.
While earlier research like Abdullah (2021) provided useful background, this study moves
further by identifying the most urgent constraint and offering tailored policy suggestions.

Chapter 3: Research Methodology

3.1 Introduction to Research Methodology

This study uses a quantitative research method to understand the challenges facing SMEs in
Afghanistan, especially after the 2021 regime change. The main reason for choosing this
method is that it allows us to collect measurable and objective data from a large number of
respondents. Since the research focuses on analyzing relationships between external
challenges (infrastructure, informal finance, and political instability) and SME performance,
a quantitative approach is the most suitable. It allows for statistical testing of the proposed
hypotheses and helps generalize the findings to a wider population. Given that the
researcher is not currently in Afghanistan, online surveys are the most practical, low-cost,
and efficient data collection method available.
This method aligns perfectly with the research objectives and hypotheses. The goal is not to
explore personal stories, but to test specific assumptions—such as whether poor
infrastructure causes lower performance or whether informal finance moderates that
relationship. Quantitative methods allow this through numeric data, correlations, and
regression testing.

3.2 Research Design

This research follows a descriptive and correlational research design. The descriptive part
helps us understand the basic characteristics of Afghan SMEs, while the correlational aspect
identifies relationships between the independent variables (infrastructure, informal
finance, political instability) and the dependent variable (SME performance). A cross-
sectional survey will be used to collect data at a single point in time, which fits well with the
current resource limitations and timeline of this study.

The main research method is an online structured survey, targeting SME owners and
managers. The survey will include multiple-choice questions and Likert-scale items,
allowing respondents to rate their experiences and challenges on a scale. This format
ensures that we collect standardized data that can be analyzed using statistical tools.

3.3 Data Collection Methods

Primary data will be collected using Google Forms, which will be shared with SME owners
and managers in Afghanistan through social media, WhatsApp business groups, and
networks like ACCI (Afghanistan Chamber of Commerce and Investment). The survey will
be offered in Dari, Pashto, and English to make it more inclusive and understandable.

The survey questions will be divided into sections:

Demographics (e.g., location, business size, years in operation)

Infrastructure challenges (e.g., access to electricity, road quality)

Financial access (e.g., use of hawala, access to bank loans)

Political environment (e.g., impact of policy changes)

SME performance indicators (e.g., revenue trend, job stability)

The survey will take around 7–10 minutes to complete and will remain open for 3–4 weeks
to ensure enough responses are collected.
This method is suitable because it allows wide reach despite geographical limits and
ensures anonymity and honesty in responses. It is also ideal for collecting large amounts of
data efficiently.

3.4 Sampling Strategy

This study will use purposive sampling to select participants who are actively involved in
managing or owning SMEs. The target population includes SME actors across different
sectors (e.g., retail, services, small manufacturing) and provinces in Afghanistan. To be
included, respondents must:

Be 18 years or older

Have at least 1 year of experience in SME operations

Be willing to complete the online survey

The aim is to collect data from at least 100 valid responses, which is a common threshold
for basic statistical analysis. While this method does not guarantee full representativeness,
it ensures that the participants are relevant and informed, making their responses credible
and valuable.

3.5 Data Analysis Techniques

After data collection, the responses will be downloaded and analyzed using SPSS (Statistical
Package for the Social Sciences). The analysis will include:

Descriptive statistics: Mean, frequency, and standard deviation for understanding general
trends.

Correlation analysis: To see how strongly each independent variable is related to SME
performance.

Multiple regression analysis: To test the hypotheses and find out which variables
significantly affect SME performance.

Moderation analysis: To test if informal finance moderates the link between infrastructure
and performance.

Charts and graphs will also be created to visualize key results.

SPSS was chosen because it is reliable, user-friendly, and widely accepted for academic
research. It helps present clean, professional findings that support decision-making.

References
Abdullah, M. H. (2021). SMEs’ development in Afghanistan: Issues and new management
perspectives. Management Studies, 9(4), 295–333.

World Bank. (2024). Afghanistan Development Update: Fragile Recovery and Challenges.

Organization, Summary, and Integration of Your Research

This literature review brings together findings from over 10 academic sources that directly
support the research questions of this study. These sources cover the three core challenges
faced by Afghan SMEs: poor infrastructure, informal finance, and political instability. Each of
these variables has been discussed using up-to-date research, both from Afghanistan and
other fragile or conflict-affected countries.

In terms of infrastructure, studies such as Abdullah (2021), ITC (2023), and Al-Hakimi et al.
(2021) clearly show that power outages, bad roads, and poor internet access limit the
productivity and reach of SMEs. These findings are closely tied to Objective 1 of this
research, which aims to assess how infrastructure problems affect SME performance in
Afghanistan. Regarding informal finance, sources like Mpofu and Sibindi (2022), Olarewaju
et al. (2024), and Abdullah (2021) highlight how SMEs rely on informal systems like hawala
due to the collapse of the formal banking sector. These sources relate to Objective 2, which
explores how informal finance supports or restricts the survival and growth of SMEs. On the
issue of political instability, the World Bank (2024), Keig and Brouthers (2022), and Al-
Hakimi et al. (2021) report that conflict, abrupt policy changes, and weak legal protections
make the business environment unpredictable. These insights directly relate to Objective 3,
which examines how instability impacts SME operations in Afghanistan.

Several studies, such as Rapp and Olbrich (2021) and USAID (2022), support the idea that
these three challenges do not operate in isolation. They often overlap and interact, which
aligns with Objective 4 of this research—to compare these issues and find out which is most
harmful to SME performance.

Lastly, the combined findings across all sources provide a strong base for developing policy
recommendations as outlined in Objective 5. These include the need for better
infrastructure investment, expanded microfinance, and a more stable regulatory
environment to support SME growth in Afghanistan.

Overall, this literature review shows that while many studies explore individual challenges
faced by SMEs, few focus specifically on post-2021 Afghanistan or compare these challenges
side by side. This is the gap that this research aims to fill.

References:
Abdullah, M. H. (2021). SMEs’ development in Afghanistan: Issues and new management
perspectives. Management Studies, 9(4), 295–333.

Al-Hakimi, M. A., Saleh, M. H., & Borade, D. B. (2021). Entrepreneurial orientation and supply
chain resilience of manufacturing SMEs in Yemen. Heliyon, 7(10), e08145.

Asia Foundation. (2022). Survey of the Afghan people 2022.

Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of

Management, 17(1), 99–120.

Gherghina, Ș. C., Botezatu, M. A., Hosszu, A., & Simionescu, L. N. (2020). Small and medium-
sized enterprises (SMEs): The engine of economic growth through investments and
innovation. Sustainability, 12(1), 347.

International Trade Centre. (2023). SME competitiveness outlook 2023: Small businesses in
fragility – From survival to growth. Geneva: ITC.

Keig, D. L., & Brouthers, L. E. (2022). CEO’s industry experience and SME performance: The
effects of corruption and political uncertainty. International Business Review, 31(3),
101913.

Keig, D. L., & Brouthers, L. E. (2022). Corruption, political instability, and firm performance:
A comparative study of SMEs in emerging markets. International Business Review, 31(3),
101913.

Mashal, S. (2014). SMEs and employment in Afghanistan. Ministry of Industry and

Commerce.

Mpofu, O., & Sibindi, A. B. (2022). Informal finance: A boon or bane for African SMEs?
Journal of Risk and Financial Management, 15(6), 270.

North, D. C. (1990). Institutions, institutional change, and economic performance.

Cambridge University Press.

Olarewaju, T., Tamvada, J. P., & McDowall-Emefiele, S. (2024). Generalized trust, corruption
perception and firm performance: Evidence from LMICs. Journal of Management and
Governance. Advance online publication.

Orange Corners. (2024). Institutional dynamics and entrepreneurship in fragile settings:

The case of Afghanistan.

SIGAR. (2023). Quarterly report to the United States Congress.

USAID. (2022). Supporting Afghanistan’s SMEs in crisis.

Welter, F. (2011). Contextualizing entrepreneurship—Conceptual challenges and ways

forward. Entrepreneurship Theory and Practice, 35(1), 165–184.
World Bank. (2021). Rebuilding resilient SMEs in fragile settings.

World Bank. (2023). Afghanistan economic monitor.

World Bank. (2024). Afghanistan development update: Fragile recovery and challenges.