Friday, July 9, 2010

Importance of SME

 The significance of SME is associated primarily with their role in stimulating economic growth.

 Other significant contributions of SME:

 Because they are labour-intensive, SME create employment opportunities.

 SME enhance regional development and create more equitable income distribution due to their location and ongoing expansion throughout the broader community

 SMEs play a vital complementary role in relation to larger firms--as suppliers and distributors.

 SMEs serve as a training ground for developing the skills of workers and entrepreneurs.

 The presence of SMEs curbs the monopoly power of larger firms and provides the structure of the economy with greater flexibility.

 Thus, a country can reduce its vulnerability to financial crises by strengthening its SMEs.

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