Abstract
The performance of Small and Medium Enterprises is a reflection of performance of economy. The developed countries had underlined the development and improvement of their Small and Medium Enterprise Sector. The contribution of the sector towards gross domestic product, value addition, and export earning and employment generation helped the developed countries to achieve economic prosperity and growth. In the Asian economies, the Small and Medium Enterprise Sector has played very significant part in economic progress and has provided opportunities to both genders to participate in economic growth of the countries. The same potential also exists in Pakistan, however, the sectoral contribution of Small and Medium Enterprise Sector in the gross domestic product of Pakistan is not appreciable, which reveals that the specific need of financing for the promotion of Small and Medium Enterprises have not been answered in appropriate manner. Consequently, Small and Medium Enterprises of Pakistan are unable to take part in the growing markets of the world because the conventional lending sources cannot meet their requirement of capital investment. A need was felt to arrange finance for SMEs through non-traditional methods i.e., through lease financing. Data were analyzed through buy-borrow and lease financing methods. Results revealed by these techniques show that lease financing is not only convenient method of financing but also more economical than buy-borrow method of financing.
The Editor and the Sub-Editor share no responsibility regarding the views and opinions expressed by the authors. Articles published in the Biannual Research Journal Grassroots can be quoted or reproduced after acknowledgment.