Study of Government Support System in SMEs: An Empirical Investigation HUSSAIN BUX MARRI*, MURLIDHAR NEBHWANI**, AND RIAZ AHMED SOHAG* RECEIVED ON 20.01.2011 ACCEPTED ON 07.06.2011 ABSTRACT The SMEs (Small and Medium Enterprises) have created its own place and value universally, no matter how tough global competition is there in international market. This research work was undertaken to assess the increase in importance of SMEs in growing nations such as Pakistan and to highlight the importance of SMEs. This paper is validated through research work undertaken by domestic and worldwide scholars. Research work was carried out in enterprises of Sindh, province of Pakistan, using questionnaire and personal discussions with business owners/entrepreneurs of enterprises. Their response was very positive on parameters which were focused towards taxation policies (Rebate), government technological support, financial support and loan facilities. In addition to this, the results were further investigated and measured through statistical measures such as mean/average, which indicate that majority of enterprises, were not happy with country's administration in terms of support they receive. Whereas, there are noticeable indications that government's assistance to small and medium enterprises is very necessary at every stage. Enterprises which have received assistance from their governments have proved to be successful in developing nations. Key Words: Government Support, Tax Rebate, Credit, Loans, Logistics, Market Liberalization. *Professor, and **Associate Professor, Department of Industrial Engineering and Management, Mehran University of Engineering & Technology, Jamshoro. 1. INTRODUCTION D eveloping nations are focusing on SMEs these days. It is because; SMEs are a tool for value addition towards economy not only for urbanized but also for growing nations. SMEs have become main focus for many researchers and created more importance in global world. It is because SMEs sector help in creating employment opportunities, thus improving living standards for the poor people [1]. As a result, boosting SMEs' customs will be beneficial for economic development of country. The success of SMEs lies behind improvement, novelty and originality of latest ideas and performance of those thoughts into reality [2]. Therefore, converting thoughts into certainty requires proper capital supply and assistance to develop and form successful enterprise in this globalisation [2]. Since, SMEs have proved their contribution in economic development in developed countries therefore, it is the responsibility of MEHRAN UNIVERSITY RESEARCH JOURNAL OF ENGINEERING & TECHNOLOGY, VOLUME 30, NO. 3, JULY, 2011 [ISSN 0254-7821] 435