SMEs Contributions in the Economies of Developing Countries

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ACKNOWLEDGEMENT

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DECLARATION

I, (Your name), would like to declare that all contents included in this thesis/dissertation stand for my individual work without any aid, & this thesis/dissertation has not been submitted for any examination at academic as well as professional level previously. It is also representing my very own views & not essentially which are associated with university.

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ABSTRACT

In this study, we will try to discuss the contributions and benefits of SMEs in the economy of developing countries. The main focus of this research will be to reflect on the contributions of SMEs in terms of job creation, employment and other economic indicators. For this purpose, this paper has taken into account studies and findings from previous research work. Secondary research has been used to find conclusions and data from a number of developing countries has been utilized for the objective of this research.

Table of Contents

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

INTRODUCTION1

Background of SMEs1

Definition1

Successful Countries with High Performance SMEs2

Contributions in Brief3

DISCUSSION3

SMEs and the Economy of the Country4

Role of SMEs in Job Creation in Developing Countries6

Role of SMEs in Peru9

Apparel Industry and Small Business9

Potential of SMEs10

Characteristics of Enterprises11

Features11

Advantages of Small and Medium Firms12

Significance of SMEs in Pakistan13

SMEs in the Chinese and Indian Economy14

Innovation and Entrepreneurship and SMEs18

The Role and Contribution of SMEs to National Economies18

SMEs in Arab Countries19

Barriers Facing SMEs20

Financing Obstacles and Problems Faced by SMEs20

SUMMARY21

REFERENCES26

SMEs Contributions in the Economies of Developing Countries

Introduction

The reason of this paper is to raise the economic and social significance of SMEs, which are currently exhibiting in the context of the globalized world. Through these businesses, new strategies channel in each country, in harmony with their own systemic, cultural and political models. With the active participation of the International Labor Organization for more than twenty-five years, it has been carrying out programs of technical cooperation, information networks, research and brokerage with international financial institutions and SME entrepreneurs.  There is little doubt among public officials, legal and economic scholars and businessmen alike about the importance that SMEs have for the economic and social development of countries. However, there is no consensus on how these companies should be identified since the concept of “small business” is not clearly defined. The concept, although commonly used, is somewhat vague, suggesting that an undertaking that is not large is a “small business", without being more specific.

Background of SMEs

Definition

In general terms, there is no standard definition of SMEs: instead the concept has been used in different contexts using various meanings. The definitions used by federal and provincial governments, as well as by private parties are usually based upon qualitative or quantitative criteria, or on a mix of both which, it could be argued, are the ideal scenario for the purposes of defining and identifying SMEs. The most common qualitative aspects used to define the term ...