Small Scale Enterprises activities play very significant roles in the development of many economies around the world. Many developed countries around the world tend to have large quantity of firms. However, in recent times the world economy has developed rapidly and this development can be attributed to the overwhelming activities of Small and Medium Scale Enterprises (SMEs), especially in developing countries of the world. Research has shown that many developed countries around the world that have attained high economic growth and development attained that because of their magnitude of small scale enterprises (SMEs). The small and medium enterprises have encouraged so many Economic activities in countries of the world both developed and developing countries which has also attracted international or global trade. Furthermore, it is important to note that the economic growth and development in all countries is highly dependent on the important and strategic place small and medium enterprises (SMEs) occupy which is as high as 90% of enterprises in most countries worldwide. The level of economic growth and development of a state is highly determined by the entrepreneurship activities as well as the high Gross Domestic Product (GDP) level of the State. That is to say in the history of the economic growth and development of a country, the role of small scale enterprise cannot be jettisoned. It is always important that everybody have a good knowledge background on small scale business. Most undergraduate student practice the act of small scale enterprises even when they don’t know it. Every country is giving attention to their small businesses because they are the major contributor to their economies. You will see series of undergraduate project topics and materials on SMEs.

Small Scale Business Enterprise

A small scale enterprise is a privately owned and operated business, characterized by a small number of employees and low turnover. The U.S. Small Business Administration states that small-scale enterprises generally have fewer than 500 employees within a 12-month period in non-manufacturing industries.

Contribution Of Small Scale Businesses To A Developing Economy

Empowerment: Globally, Small and Medium Scale Enterprises (SMEs) are tools for empowering the citizens and for the economic growth of that Nation. Small and Medium Scale Enterprises (SMEs) are usually associated with rapid economic growth of countries which is seen through its role in empowering the citizens like through learning of different skills and becoming their own boss.

Innovations: Small and Medium Scale Enterprises (SMEs) are the driving force for large number of innovations and contribute to the growth of the national economy through employment creation, investments and exports. Owing to the success of the Asian tigers, interest is running SMEs particularly in developing countries that are in the rat race to meet and reduce the economic and development gap.

Creation of jobs: Small and Medium Scale Enterprises (SMEs) sector is the highest employer of labour and it contributes immensely to the GDP of any meaningful economy. These Small and Medium Scale Enterprises (SMEs) creates jobs for workers who have been laid off from state-owned enterprises due to the steady transition from communism to a market based economy. SMEs are known as a major employment avenue to people and stimulate the development of the countries by promoting entrepreneurial and business skills amongst communities in the country.
Poverty alleviation: In Sub Sahara Africa for instance, Small and Medium Scale Enterprises are considered very important propellers for obtaining national development goals, such as poverty alleviation and economic growth.

Conclusion

In conclusion, Small and Medium Scale Enterprises can be said to be key players in the economy and the wider eco-system of firms. Enabling them to adapt and thrive in a more open environment and participate more actively in the digital transformation is essential for boosting economic growth and delivering a more inclusive globalization.In nut shell, this portrays Small and Medium Scale Enterprises (SMEs) as a propelling engine or system for economic growth and development of nations.