According World Bank estimation 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs.
SMEs are responsible for introducing most of today’s products and services on the markets and are typically much better at identifying and adopting new trends than larger, established corporations.
Small businesses are vital to the success of the economy. Not only as they provide the success stories of the future, but also because they meet local needs namely hairdresser, financial consultant and emergency plumber.
They serve the requirements of larger businesses namely for photography services, printed stationery, catering and routine maintenance. Of course, you don't have to set up your own enterprise to be enterprising.
Small businesses tend to attract talent who invent new products or implement new solutions for existing ideas. Larger businesses also often benefit from small businesses within the same local community, as many large corporations depend on small businesses for the completion of various business functions through outsourcing.
Small business is – quite frankly – big business. It is estimated that more than 90 per cent of the world’s businesses are small and medium-sized enterprises (SMEs). Do not be surprised. SMEs are, on average, the businesses that are generating growth, creating jobs, growing faster and innovating more. But most of all, they are a good deal less complicated (structurally) and more efficient and flexible than are large firms SMEs have diverse needs, they need support. Private-sector companies, for instance, can not only lend their expertise to SMEs by acting as advisers; they can also potentially provide them with access to larger clients and investors and help them build capacity.
Small businesses do not always stay small.
Large corporations, such as Microsoft, Nike, KFC, Toyota and many others started off as small businesses that grew to become major players in the national and international marketplace.
Many computer-industry leaders began small working on hand-assembled machines out of their garages. Microsoft is a prime example of how a small business idea can change the world.
Dr Anchan C K
The writer is an international advisor
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