ArticlesEntrepreneurshipSmall Enterprises

The importance of small businesses


Small businesses in today’s world play the key role of innovation, entrepreneurship and job creation in human societies. Hence, the talk of professionals from business men is no longer as small as it is on the corner of the strategic locomotive, which reflects a comprehensive understanding of the big bets about the future of small and medium-sized enterprises as well.

 Indeed, the economies of the superpowers are no longer only based on large projects, but also on small and medium-sized enterprises (SMEs) as a basis for development, attracting capital, enriching entrepreneurial experiences, stimulating youth capacities and providing job opportunities for the unemployed, supporting the economy. Time and again, after the certainty of a deceptive prosperity prevailed for a few decades dating back to the last century.

It is therefore not surprising that small-scale enterprises occupy a privileged position in all countries as producers of added value and wealth, as well as their significant contribution to the growth and prosperity of major economic projects and the settlement of sustainable development that can push developing societies into the ranks of developed or industrial societies.

Small enterprises .. Safety valve in the face of poverty and underdevelopment

The statistics show that the small business sector has a very important economic weight. More than 90% of the companies listed around the world are small and medium enterprises, which was difficult to ratify until recently! Reflecting the importance of this type of entrepreneurship, which has become the main catalyst for growth and job creation, particularly as it adapts rapidly to the benefits of innovation, development and technological revolution, as well as being less structurally complex, more efficient and more flexible in terms of performance than larger firms.

The role of small enterprises in extracting developing countries and societies from poverty and economic decline to broad horizons of development contributes to tackling the dilemma of industrial and productive backwardness, technological gaps and the associated mismanagement of the natural and human resources of countries, In addition to their immediate impact on the living reality of societies and to get them out of poverty and destitution, because these projects mentioned in the category (small) is a catalyst for the development of economies, improving incomes and raising the rates of development Bam Lyase.

The growing interest in small and medium-sized enterprises; the high absorptive capacity of the labor force, which has remained in a vicious circle of prolonged unemployment and unemployment, as well as its role in the development of managerial, technical, production and marketing skills that open up ample demand for qualitative demand in the labor market; And self-employment.

Small projects.. Flexibility and positive return in the national economy

The figures and statistics confirm the consensus of the importance of small enterprises, and their crucial role in driving production and increasing export rates, both directly and indirectly, which makes their impact more than positive on national economies, especially the emerging ones.

In the same context, small enterprises have demonstrated great ability and efficiency in tackling the major problems that the various economies have faced. Hence, they have increased their interest in both the official and the popular levels in the various countries. Due to the great flexibility that characterizes their production and marketing plans and their renewed ability to restructure, and adjusting the production path according to market variables.

Successful economic development experiences have revealed that most of them are achieved through small-scale projects, which are the main focus of expanding the productive base, increasing exports and creating new jobs, especially in the margins and poverty belts, in rural and remote areas., transforming rural areas into industrial zones with minimal infrastructure and basic equipment.

This is in addition to the ability of these projects to reduce the volume of class inequalities and social gaps, bridge imbalance between different regions of the country, and achieve equitable distribution of national income and state and private sector interventions.

The impact of microenterprises on economic development and contribution to the economic and social goals of ambitious countries and societies has become clear and clear. This has led many developed countries such as Japan, China, the United States, Germany and others to support and encourage this type of project , helps to move the wheel of the economy affected by successive global crises, to achieve an important qualitative leap at all levels, especially at the economic and social levels in these countries.

Small business .. Confirmed features and casual obstacles

If flexibility and direct personal coping, and alleviation of poverty and unemployment, a broad title for small businesses, there are many other features that characterize their performance and results to make them have a multidimensional impact on the individual, community and international levels, the most important of which is the ease of incorporation and direct management, Money to establish and operate, and lack of complexity of work methods and production, and the ability to adapt to the latest developments and changes and constant updating.

In addition to low costs of management and production, which is highly competitive, and to play a complementary role for large industries such as electronic spare parts or computer software, and the growing frequency of governmental and financial support and encouragement, both procedural and banking, as well as a source of technological and marketing innovation.

The importance of small enterprises is also reflected in the fact that they are the source of many traditional and emerging goods and services required for consumption in society. There are artisanal goods and services whose production is limited to certain families who have inherited the profession entrusted with producing limited quantities. On the other hand, the history of many large industries that employ tens of thousands of workers today comes back to small projects and hands that do not exceed the number of fingers.

Despite the accumulation of elements of this great importance, there are several obstacles stand in the way of small enterprises, the most important of which is the problem of the provision of some raw materials and raw materials, and the difficulties related to attracting investments to this sector, starting with the complexities of the legislative environment associated with the composition and work, Attractive investment.

Many economists believe that overcoming obstacles to the success of microenterprises is very important and needs to be given the utmost care and assistance in various ways and in accordance with the available means through the initiative of decision makers to reduce import rates, increase export rates and local production, And to review the current status of small and medium-sized enterprises (SMEs), by codification and support.

This is supported by the development of development strategies and policies that encourage the establishment and management of small enterprises, the expansion of their work, the involvement of civil society organizations in disseminating the importance of this type of projects suitable to the conditions of our Arab and Islamic societies, and the dissemination of the culture of entrepreneurship and entrepreneurship in our societies, Bureaucracy on the pretext of stability and non-risk. While many researchers, academics and economists have sought over the last few years to research and analyze the successful recipe in the field of microenterprise and entrepreneurship, many of them are now thinking about how to enhance the performance of SMEs as a viable economic solution to our economic reality. All institutional and regulatory differences around the world, by the wider use of international standards, the promotion of entrepreneurship and the help of small firms to invade markets on an equal footing with major productive conglomerates

Show More
Close
Close