Small And Medium Enterprises ( Smes ) Essay

1063 Words May 11th, 2016 null Page
Small and Medium Enterprises (SMEs) are the businesses, which employ less than 250 persons. Though they are largely unstructured businesses, they interestingly, account for the lion’s share of the workforce in virtually every economy. To a large extent, they are usually sole-proprietorship businesses, especially at the micro and small levels.

Due to their small sizes, the large labour they employ, the ease of starting up and speed of adaptation to emerging trends and consumer tastes, SMEs have been touted as the drivers of future growth of an economy. Armed with the right management, access to cheap finance, quality workforce, government support and an enabling macro-economic environment, they have the potential to transform into the corporate behemoths of tomorrow. World renowned companies such as Coca-Cola, Nestle, PZ, Nigerian Breweries, Toyota and Honda all started as SMEs and today, they dominate the global business place and rank top in the annual listing of the Fortune 500 companies. According to the Report on Support to SMEs in developing countries through financial intermediaries by Dalberg, SMEs are a fundamental part of the economic fabric in developing countries and they play a crucial role in furthering growth, poverty eradication, innovation and inclusive prosperity.

In spite of the latent potentials of the SMEs, the Dalberg report noted that ‘...they are unfortunately, strongly restricted in accessing the capital required to grow and expand, with nearly…

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