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Background to small and medium enterprises
Importance of small enterprises
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Recommended: Background to small and medium enterprises
In business world, small and medium enterprises have a long history of service for providing employment opportunity to the people of country. It increases the ability of people to make them more innovative and to cope with unemployment crisis. Small and medium-sized enterprises (SMEs) are seen as a key to economic growth, innovation and employment growth significant employment potential, revenue generation and technological advancement in most economies. It is very important sector in both developed and developing countries. In Pakistan, SMEDA defines Small & Medium Enterprises, as approved in SME Policy 2007, as an enterprise that has up to 250 employees, or a paid up capital of 25 Million PK Rupees, or an annual sale of up to 250 Million PK Rupees. The Federal Government, in line with the economic development of Pakistan may, from time to time modify the eligibility criteria as it sees fit. All providers of services receiving funding from the Government may define more narrow scopes for specific targeting purposes (Smeda, 2007). In developing countries like Pakistan SMEs play very important role by providing employment opportunities. SMEs provide platform to people to establish business with minimum capital. SMEs development depends upon many factors like infrastructure, finance, labor, location and market, political, law and order situation. The structure of SMEs changes in term of size, work force, market and outcome as they develop. Recently in literature there is an issue about the existence of SMEs with increase in economic development of developing countries. Another issue which requires research is that how much government support requires for SMEs development (Tambunan, 2008). This study aims to address both issues in... ... middle of paper ... ...c Studies, 4 (2). pp.ÿ113-136. ADB (2004), ADB to Help Foster Development of SME Sector in Bangladesh, Asian Development Bank, Mandaluyong, available at: www.adb.org 2004. SME. Washington DC: World Bank Group Review of Small Business Activities. Narain, S. (2003), “Institution capacity building for small and medium –sized enterprise promotion and development”, Investment Promotion and Enterprise Development Bulletin for Asia and the Pacific, No. 2. Quddus, M. and Rashid, S. (2000), Entrepreneurship and Economic Development: The Remarkable Story of Garment Exports from Bangladesh McDowell, S.D. (1997). Globalization, liberalization and policy change: A political economy of India's communications sector. Minton, A.A. (2006), “SMEs in Bangladesh Harvie, C. (2003), The contribution of micro-enterprises to economic recovery and poverty alleviation in East Asia