SME Development In Pakistan. Do Economic Growth And Government Support Matter?
[2023-12-05 00:22:10]
In the business world, SMEs have a long history in providing employment opportunities for domestic people. It makes them more innovative and enhances people's ability to cope with the unemployment crisis. SMEs are regarded as the key to economic growth, innovation and employment growth, but in most economies there is a great potential for employment, income generation, and technology advancement. This is a very important field both in developed countries and in developing countries.
Researchers generally believe in the importance of SMEs for economic growth. The Asian Development Borrow emphasized the important role of small and medium enterprises in domestic growth in the report "SME Development in Pakistan". Furthermore, the role of small and medium enterprises in securing employment creation and equitable income distribution is recognized. Furthermore, according to the 2008-2009 Pakistan Economic Survey, there are 2 million small and medium enterprises in Pakistan, accounting for over 90% of the private enterprises in the industrial sector, employing nearly 78% of non-agricultural workers , And shows a contribution rate of 30% or more. Gross domestic product (GDP): Small and medium enterprises are the driving force for economic growth because they can create employment, nurture entrepreneurial spirit and provide depth to the industrial base of the economy (Ahmad, Nenova, And Niang, 2009).
The important role of SME sector as a factor contributing to national economic growth has been recognized. Small and medium-sized enterprises account for 99.2% of the total number of commercial facilities, while the small and medium enterprises sector accounts for 32% of real gross domestic product (GDP) in Malaysia and 19% of total exports. Therefore, there is a great opportunity to increase the contribution of SMEs to the domestic economy. In relation to this, the government has set numerous performance targets for the SME sector. These goals include making 37% of GDP, which accounts for 22% of total exports, of small and medium enterprises and hiring more than 2 million people in SME sector by the end of 2010. The Government's Small Business Development Program and Initiative added more targeted programs in 2007. In the same year, 189 programs were organized and implemented, providing 7 billion RM of financial assistance to the development of small and medium enterprises in Malaysia.
Considering the perception of the potential growth of small and medium enterprises, the Tanzanian government is implementing SME development policy (2003) to support the development of the SME sector. However, the objective of the policy is to increase the contribution of the gross national product and export income, and to win the fight against poverty. (Sunday observer on June 26, 2005) First of all, very small executives have a lack of specialization, a multifunctional role, a lack of human resources that can be promoted, and a large number of leaders and a large number Brought the advantages of the leader. Informal management Secondly, there is the ability to adjust accordingly, that the control of the environment is limited, available resources are limited, can not scan the potential changes that are expected, and so on. Third, there is an informal operation form, conflict is easy to solve, loyalty is high.