Challenges for Pakistani SMEs in Industry 4.0

Abstract

Small and medium enterprises (SMEs) play a vital role in the development of any economy. The disruptive technologies of the fourth industrial revolution have ignited the flexibility and dynamic nature of the market. Industry 4.0 requires firms to deliver highly customized and high-quality products at low price and on time. However, the SMEs sector is not performing up to the standard, which is quite disturbing in the current economic situation of the country. This chapter has elaborated the application of advanced information and communication technologies of Industry 4.0 in the context of SMEs. Based on the requirements of Industry 4.0, this chapter has also explored the challenges faced by SMEs in Pakistan. The SMEs in Pakistan are presently coping the challenges such as limited access to finance, the undue compliance and excessive paperwork imposed by regulators, lacking mechanism of talent management, lacking skilled workforce, absence of networking and collaboration, mismanagement of raw material, and insufficient infrastructure.