Abstract

This thesis investigates the relationship between resource scarcity and firm performance among small and medium enterprises (SMEs) in developing economies, focusing on Egypt and Turkey. Drawing on a theoretical framework that integrates the Supply and Demand model, the Production Function, the Profit Maximisation model, and the Solow Growth Model, the study develops the hypothesis that financial, infrastructure, digital, market, and institutional scarcity constrain firm performance through distinct but potentially reinforcing channels.

Using firm-level data from the World Bank Enterprise Surveys, comprising 873 firms in Egypt and 1,108 firms in Turkey, separate Ordinary Least Squares (OLS) regressions are estimated for each country to assess the relationship between these five dimensions of scarcity and annual sales performance. The results indicate that digital and financial scarcity are the most robust predictors of sales performance across both countries, whereas the effects of market, infrastructure, and institutional scarcity are country-specific and, in some instances, inconsistent with theoretical predictions.

Advisor

Moledina, Amyaz

Second Advisor

Shaukat, Sara

Department

Economics

Disciplines

Econometrics | Growth and Development | International Economics

Keywords

Small and Medium Enterprises (SMEs), Resource Scarcity, Firm Performance, Financial Constraints, Digital Scarcity, Egypt, Türkiye

Publication Date

2026

Degree Granted

Bachelor of Arts

Document Type

Senior Independent Study Thesis

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© Copyright 2026 Shadi H. Soboh