Economic Development And Development Of Small And Medium Sized Enterprises ( Smes )

Small businesses are the backbone of national economy and play a leading role in innovations as well as in creating jobs. Small business has the intrinsic needs to growth. Obvious contributions of the growth of small businesses include the increased return on investment and job creation. The interesting and valuable question is how small business grows and are all small businesses growing? It is no surprise that the growth of business is a core topic both in organization theory and entrepreneurship, both are interested in the process and causes of business growth. Stages of growth models, which assume that business go through some distinct stages from birth to maturity, have been the most popular theoretical approach in academic to understand small business growth. Although the stages model of growth has been criticized for being too sequential and linear which is unrealistic and inconsistent with empirical evidence (e.g. Phelps et al., 2007; Levie and Lichtenstein 2010), various new stages models of business growth have been developed since the 1960s.

Small businesses are essential for the growth of any economy since they are considered as building blocks. They can be equated to stem cells in the human body that have the ability to self-generate and differentiate into various structural forms. Small businesses can be established to cut across industries, countries, and communities. One of the primary roles of small businesses is the creation of employment for large numbers of people in society. In the United States (US), small businesses are estimated to create jobs for approximately 64 percent of the population with most of them having less than 500 employees. In other countries like Australia, small businesses are classified as those having less than 20 employees.

In the period of the 1950s and 1960s the prominence given to the role of small business enterprise in the UK economy has been rewarded (Stanworth and Purdy, 2003). IN the economy of the UK 99.9 per

This paper addresses the issues and current literature surrounding research into innovative marketing in small and medium sized businesses (SME’s). Micro and SME’s are collectively major contributors of jobs and account for 99% of enterprises in the EU (Nyman et al., 2006). It is also recognised that marketing is one of the most important business activities and is vital to the survival and growth of businesses (Simpson & Taylor, 2002). Therefore, a critical and detailed understanding of how SME’s operate within marketing is essential. While it is recognized that SME’s do partake in marketing, the form SME’s marketing takes is not fully understood (O’Donnell, 2004). However, what is understood is that SME’s do not perform

The literature support was drawn from survival of new firms and growth of existing firms. I have also taken literature support to develop an explanation about ‘growth’ in small and entrepreneurial context.

In their study, they provide Iran and Malaysia as examples. In Iran, business that has 10 to 49 employees is categorized as SMEs. In Malaysia, the number of employees needed to be categorized as SME is between 5 to 19 employees. It can be seen SME’s definition cannot be defined in general, because each country having its own parameter in defining SME.

on the criteria set by a particular country. The criteria for the categorization of SMEs can be scaled by looking at the company’s turnover sales, some countries look at the number of employees in the business and there are countries which perceived SMEs based on mixed criteria. In addition, global organization entities such as European Commission and World Bank also have their own views on how to identify SMEs.

SMEs in Singapore generate a large share of new jobs. The government handed out $98 million to be used in upgrading projects for small and medium sized enterprises with the sole aim of increasing a torrent of new jobs. According to the Minister of State for Trade and Industry, Teo Ser Luck, these projects would create 15,000 new jobs and produce over $4.4 billion to the economy in terms of value added. SMEs employ more labor intensive production

A survey on the Strategic and Entrepreneurial Orientation (EO) and Growth of Small & Medium Enterprises (SMEs)

THE ROLE OF SMALL SCALE INDUSTRY IN NATIONAL DEVELOPMENT IN NIGERIA Ayozie Daniel Ogechukwu, Delta State University, Abraka, Delta State, Nigeria, The Federal Polytechnic, Ogun State, Nigeria Abstract A business whether small or big, simple of complex, private or public is created to provide competitive prices. Business in Nigeria has been classified as small, medium and large. In both the developed and developing countries, the government is turning to small and medium scale industries, as a means of economic development and a veritable means of solving problems. It is also a seedbed of innovations, inventions and employment. Presently in Nigeria, SMEs assist in promoting the growth of the country’s economy, hence all the levels of

The small and medium scale enterprises (SMEs) in developing countries such as Ghana have been playing very strategic role in the developmental agenda of the nations in the areas of rapid industrialization and other developmental goals as well as job creation among the youth. The interest in the role of SMEs in the development process continues to be in the forefront of policy debates in most countries. Citing Abor and Quartey (2010), Nyameet al (2013) revealed that SMEs represent 92% of Ghanaian businesses and contribute about 70% to Ghana’s GDP and over 80% to employment for the year 2010. Obviously, SMEs form a greater part of the informal sector, and hence contributes significantly to Gross Domestic Product (GDP) whenever assessing the overall productivity of an economy (Stokes & Wilson, 2006).

When SMEs fail, which is a very common phenomenon governments point fingers to SME entrepreneurs and vise versa.

Schumpeter denoted entrepreneur as a key in the economic growth and entrepreneurial process as a prime element in the progress and advancement of economy. Again he stated that entrepreneurship is an essential element for the development of any economy and economic and political framework condition would not affect the growth.

In his book (Prasad C. S., 2004) has predicted the vision of SMEs up to 2012, regarding the employment generation and open economic development of trade from India. The author explained that due to Liberalization, Globalization and WTO a rethinking is being made to analyse the targets before the SMEs sector. The author suggested that with the inherent advantage of flexibility and innovativeness of the sector, the major constraints of economies of scale could be met by adopting the cluster development and formulation of appropriate policies. The book is based on the compilation of the various articles of the author published in different journals on the theme of WTO and SMEs, SMEs financing, SMEs policy, Employment Generation in SMEs and Export potential and cluster development among SMEs etc.

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.