FROM ACCESS TO SUCCESS: THE INFLUENCE OF FINANCIAL INCLUSION AND LEADERSHIP ON ECONOMIC GROWTH IN SMEs

Abdul Rauf; Syed Ibn-Ul- Hassan; Dil Shair Bhullar

Abdul Rauf School of Management Science and Engineering, Nanjing University of IST, Nanjing, CHINA
Syed Ibn-Ul- Hassan HoD, Commerce & Business Administration, GCU, Faisalabad Layyah Campus, Pakistan
Dil Shair Bhullar Project Director, Lahore Leads University, Wapda Town Lahore, Pubjab, Pakistan

Keywords: Financial Inclusion, Transformational Leadership & Economic Growth, Lahore, Pakistan

Abstract

This research employs a quantitative technique to evaluate the effect of financial inclusion & transformational leadership on economic performance of SME in Lahore manufacturing sectors. Self-administered questionnaires were completed separately by managers and other key decision-makers for financial service sector, leadership behaviors and economic measures. The dimensions of financial inclusion include service, credits & knowledge and on other hand, transformation leadership was captured by visionary communication and innovation. In this drive, Smart PLS regression analysis results indicated that there was direct positive relationship amid financial inclusion and economic performance while the transformational leadership was also proved to have a positive influence but to a limited extent. Thus, the paper also emphasizes importance of leveraging funds and leadership in order to support development of SMEs. The results provide significant information in reaching the conclusion and making the suitable decisions. The study suggests that improving financial inclusion through easier access to banking and financial education can help the SMEs grow and succeed in Lahore.