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Development of Local Economy through the Strengthening of Small-Medium-Sized Forest Enterprises in KPK, Pakistan

Author

Listed:
  • Muhammad Zada

    (Business School, Henan University, Kaifeng 475000, China)

  • Shagufta Zada

    (Ideological and Political Education Department, School of Marxism, Northeast Forestry University, Harbin 150040, China)

  • Mudassar Ali

    (School of Management, Harbin Institute of Technology, Harbin 150001, China)

  • Yongjun Zhang

    (Business School, Henan University, Kaifeng 475000, China)

  • Abida Begum

    (Ideological and Political Education Department, School of Marxism, Northeast Forestry University, Harbin 150040, China)

  • Heesup Han

    (College of Hospitality and Tourism Management, Sejong University, Seoul 05006, Korea)

  • Antonio Ariza-Montes

    (Social Matters Research Group, Universidad Loyola Andalucía, C/Escritor Castilla Aguayo, 4, 14004 Córdoba, Spain)

  • Alejandro Vega-Muñoz

    (Public Policy Observatory, Universidad Autónoma de Chile, 425 Pedro de Valdivia Avenue, Providencia, Santiago 7500912, Chile)

Abstract

Small–medium-sized forest enterprises (SMFEs) have historically played an essential role in developing countries’ economies worldwide because most businesses start as small businesses, and government support and knowledge-based recourse are critical to the sustainable development of SMFEs and local economies. The current studies examined the effects of the Khyber Pakhtunkhwa (KPK) government’s (Pakistan) support (GS) and entrepreneur knowledge (EK) on the development of small–medium-sized forest enterprises (SD) and their contribution to the local economic development (LED) of the region. Primary data were collected from 350 SMFEs in KPK, Pakistan. The model was developed by using a structural equation model (SEM) to investigate the impact of GS, EK, and SMFEs on the growth, SG, and sustainable development of the local economy. This study concludes that EK and GS could increase growth in SMFE businesses and contribute to LED. On the other hand, crediting loans and equipping businesses with training could not directly affect SMFE businesses and LED growth. The government needs to use natural resources and the SMFE communities as leaders among suppliers in the local market for the sustainable development of LED and SMFEs, alongside focusing on preserving and taking initiatives to develop. This study discusses several practical implications for policymakers, business owners, and academics, with recommendations for future research.

Suggested Citation

  • Muhammad Zada & Shagufta Zada & Mudassar Ali & Yongjun Zhang & Abida Begum & Heesup Han & Antonio Ariza-Montes & Alejandro Vega-Muñoz, 2021. "Development of Local Economy through the Strengthening of Small-Medium-Sized Forest Enterprises in KPK, Pakistan," Sustainability, MDPI, vol. 13(19), pages 1-17, September.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:19:p:10502-:d:640458
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    Cited by:

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    2. Nadeem Ullah & Shagufta Zada & Muhammad Amir Siddique & Yike Hu & Heesup Han & Alejandro Vega-Muñoz & Guido Salazar-Sepúlveda, 2021. "Driving Factors of the Health and Wellness Tourism Industry: A Sharing Economy Perspective Evidence from KPK Pakistan," Sustainability, MDPI, vol. 13(23), pages 1-16, December.
    3. Ximing Chen & Jie Shang & Muhammad Zada & Shagufta Zada & Xueqiang Ji & Heesup Han & Antonio Ariza-Montes & Jesús Ramírez-Sobrino, 2021. "Health Is Wealth: Study on Consumer Preferences and the Willingness to Pay for Ecological Agricultural Product Traceability Technology: Evidence from Jiangxi Province China," IJERPH, MDPI, vol. 18(22), pages 1-13, November.

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