As large enterprises have restructured and downsized small, medium and micro enterprises (SMMEs) have come to play an increasingly important role in South Africa's economy and development.…
For a long time, small or medium-sized enterprises(SMEs) have played important roles in the development of national economy construction. And lots of research have been set up to look for the solution for the SMEs in raising finance. Putting so much efforts on SMEs based on two reasons: on one hand, SMEs are the engine of economic development; on the other hand, banks and some institutions fail to invest SMEs which will impede their growth in the society, and will constrain the development of society.(Beck, 2006) SMEs have been defined in various ways, and lots of the definitions include the number of employees, the investors, the suppliers and most…
Acknowledgements: I thank Arie Lewin for stimulating this research, and Evis Sinani for her research…
14. UNECA, 2001. Enhancing the Competitiveness of Small and Medium Enterprises in Africa: A Strategic Framework for Institutional Support, Retrieved from http://www.uneca.org on July 30, 2010.…
2. Aryeetey, E. (1993), “Policy on Sectoral Credit Allocation and Credit Flow to small Enterprises in Ghana, in A.H.J. helmsing and T. Kolstee (ends), Small Enterprises and Changing Policies, IT publications, London…
In pursuit of economic growth the economies of the developing countries around the world face a host of challenges. Widespread poverty, infrastructure & institutional deficit are the major task faced by most economies of strong financial environment which also includes equitable income distribution along with employment creation, while every developing economy may experience its own variant of these problems. In this scenario, the small and medium sized enterprises (SMEs) sector contributes towards distribution, employment, exports, greater output and equitable income so its role becomes extremely important. Dynamism is also added to the economy by the help of this sector. Contribution to the world’s leading and emerging economies can also show the importance of the SME sector. India, China, Brazil, Malaysia and Japan are among other countries that have relied heavily on SME development to fuel economic growth. It is done by the private sector development strategies along with the adoption of intensive policies for implementation.…
SME (Small & Medium Enterprise) is an Enterprise that is independently owned an operated and is not dominant in its field of operation. Most of the countries of the world defined small & medium enterprises (SMEs) depending on the size and the size is measured by annual turnover, the number of employees and the balance sheet, i.e. the value of enterprise’s assets.…
SMEs are considered the engine of economic growth in both developed and developing countries, as they generate more employment opportunities with relatively small investment than large-scale firms do. SME provide low cost/ investment employment because the unit cost of persons employed is lower for SMEs than for large-size units; and they are more labor intensive than large-scale enterprises, since labor uses either manual, or semi automatic, and seldom uses automatic processes of production.…
Accounting for 79% of all employment in Turkey, SMEs are central to creating jobs for an underutilized and growing labour force in the country. Notably, SMEs and self-employment are also one of the only sources of employment for the poor, further emphasizing the importance of the SME sector for job creation.…
In its effort to diversify the economy away from dependency on the mineral sector, the government of Botswana realised the importance of supporting SMMEs in fostering economic growth and creating jobs. Over the past two decades, targeted financial support as well as advisory programmes to help the people of Botswana to establish their own enterprises was introduced and implemented at different levels. In the initial stages, “the programmes were set up more in response to specific problems encountered than as the basis of a comprehensive and more focused government policy on SMMEs” (RB, 1999). However, in recent times the landscape has since changed with government and the private sector pulling resources together in a crusade to assist the local SMME sector. The purpose of this chapter is to provide an overview of the SMME sector by reviewing the initiatives undertaken by government. Such initiatives include policy formulation and the implementation of programmes intended to assist the SMME sector in Botswana.…
Small firms play vital roles in the process of industrialization, sustainable economic growth encouragement of entrepreneurship, employment generation reduction of poverty and contribution to the Gross Domestic Products (GDP) of many countries and Nigeria is not an exception. They perform such vital roles through innovation and the production of various goods and services which empower the process of economic development. For small firms to carry out such…
The basement of every economy are small and medium sized enterprises (SMEs´). They occupy an important role as the largest employer, they can create jobs at low capital cost, are a source of innovation. SMEs´ can to decentralize business activity, help to the region 's growth…
Ghana’s workforce is predominantly employed by the informal sector. This sector of our economy is largely made up of Small and Medium scale Enterprises (SMEs) and sole proprietorships (“one man business”). This is confirmed by available data from the Registrar General which indicates that 90% of companies registered in Ghana are SMEs. Over time, this target group has been identified as the catalyst for economic growth, serving as the major source of income and employment for many Ghanaians.…
Gebeyehu, W. & Assefa, D, (2004). The Role of Micro and Small Enterprises in the Economic Development of…
In many countries, small businesses contribute greatly into their economy. Most of the large businesses in many countries started as a small business. They contribute to the society by selling their products to customers, products that people need. They also provide employment opportunities to people, which can become reasonable career paths and choices. And it could give people experiences, education, and training to make their own businesses.…