Advanced Journal of Management, Humanity and Social Science

Abstract This study examines the impact of microfinance services on the financial sustainability and performance of medium-sized enterprises (SMEs) in Mazar-e-Sharif, Afghanistan, using data from 100 firms selected through systematic random sampling. The primary objective is to assess how microcredit access, savings services, and entrepreneurial development training affect return on assets (ROA) and financial sustainability (FS), while controlling for firm age and size. Data were collected via structured questionnaires administered to SME owners/managers, with reliability confirmed by Cronbach's alpha of 0.780 (N=100 items) and content validity established through review by 10 Afghan microfinance experts. Analysis employed descriptive statistics, Pearson correlation matrices, and multiple linear regression models following established SME research methodologies. The first regression model revealed that internal finance (β=0.012, t=10.78, p<0.001) and trade credit (β=0.008, t=7.23, p<0.001) significantly enhance ROA (R²=0.61, F=24.37, p<0.001), while non-institutional finance shows a negative effect (β=-0.130, p=0.017). The second model demonstrated strong positive impacts of microcredit (β=0.287, t=5.02, p<0.001), savings services (β=0.214, t=3.67, p=0.01), and entrepreneurial training (β=0.176, t=3.11, p=0.002) on financial sustainability (R²=0.65, Adj. R²=0.62, F=28.45, p<0.001), with larger/younger firms benefiting most. Nine of ten hypotheses were supported, underscoring microfinance's comprehensive role (financial + non-financial services) in fragile economies. Policy recommendations include government investment in energy infrastructure, transportation networks, and SME training programs to enhance competitiveness. These findings offer actionable insights for post-conflict development strategies.

Abstract Small and Medium-sized Enterprises (SMEs) represent the backbone of the global economy, yet they are disproportionately vulnerable to global economic fluctuations, supply chain disruptions, and sustainability pressures. In today’s uncertain environment, resilient supply chain management (RSCM) and the integration of sustainable practices have become strategic imperatives for SMEs striving to maintain competitiveness and continuity. This paper explores how SMEs can enhance resilience by diversifying suppliers, leveraging digital technologies, and strengthening collaborative networks while simultaneously adopting sustainability measures such as circular economy models, renewable energy integration, and ethical sourcing. The study emphasizes the dual role of resilience and sustainability as mutually reinforcing concepts: resilient practices ensure operational continuity during crises, while sustainable initiatives reduce long-term vulnerabilities and improve stakeholder trust. Case studies from SMEs across diverse industries demonstrate that adopting these strategies not only mitigates risks but also provides access to global markets, enhances brand reputation, and improves resource efficiency. However, SMEs face significant barriers, including limited financial resources, technological gaps, regulatory complexities, and knowledge deficits. Overcoming these challenges requires supportive policies, financial incentives, and capacity-building programs, alongside SME-driven innovation.