DIVERSIFICATION, INNOVATION, AND DIGITALISATION: AN EFFECTIVE VACCINE FOR SURVIVAL OF PAKISTAN’S SMES AMIDST COVID'19

The SME sector is highly vulnerable to COVID-19 due to fragile financial support systems. In Pakistan, 3.3 million SMEs contribute over 30% to the GDP and employ 78% of the non-agricultural workforce. However, lockdowns and border closures have led to mass layoffs and financial distress. This conceptual paper proposes a strategic "vaccine" for survival: the rearrangement of resources through Diversification, Innovation, and Digitalisation. Grounded in the Theory of Business Model, Technology, and Innovation and Modern Portfolio Theory, the study argues that reorganizing traditional business models is essential for resilience. While limited by a lack of existing empirical data on this specific pandemic context, the paper provides a theoretical framework for future researchers to test across different regions