Strategic Importance of Smes
Strategic importance of SMEs
| |Parallel with ownership reform and privatization, the number of SMEs is increasing. The strategic importance of |
| |SMEs is today acknowledged around the world for the following reasons: |
| | |
| |• small and medium-sized enterprises are contributing to employment growth at a higher rate than larger firms. In |
| |the EU economy about 99.9 per cent of the enterprises are SMEs of which 92 per cent are micro enterprises. Read |
|Number of SME’s |also “What is a small business?” |
| | |
| |• the private sector and in particular SMEs form the backbone of a market economy and for the transition |
|Gross Value Added |economies in the long-term might provide most of the employment (as is the case in the EU countries). A World Bank|
|(GVA) |sector policy paper shows that their labour intensity is from 4-10 times higher for small enterprises; |
| | |
| |• support for SMEs will help the restructuring of large enterprises by streamlining manufacturing complexes as |
| |units with no direct relation to the primary activity are sold off separately. And through this process the |
| |efficiency of the remaining enterprise might be increased as well;
| |Parallel with ownership reform and privatization, the number of SMEs is increasing. The strategic importance of |
| |SMEs is today acknowledged around the world for the following reasons: |
| | |
| |• small and medium-sized enterprises are contributing to employment growth at a higher rate than larger firms. In |
| |the EU economy about 99.9 per cent of the enterprises are SMEs of which 92 per cent are micro enterprises. Read |
|Number of SME’s |also “What is a small business?” |
| | |
| |• the private sector and in particular SMEs form the backbone of a market economy and for the transition |
|Gross Value Added |economies in the long-term might provide most of the employment (as is the case in the EU countries). A World Bank|
|(GVA) |sector policy paper shows that their labour intensity is from 4-10 times higher for small enterprises; |
| | |
| |• support for SMEs will help the restructuring of large enterprises by streamlining manufacturing complexes as |
| |units with no direct relation to the primary activity are sold off separately. And through this process the |
| |efficiency of the remaining enterprise might be increased as well;