Small businesses are the backbone of most economies of the world and they have come to realize that this fact is indisputable. Any responsible government should strive to support the growth of SME’s in the best interest of the country. As a key driver of economic growth, their importance and relevance in every country of the world cannot be overemphasized.
Collected.Reviews have it that small businesses generate a very significant percentage of the gross domestic product popularly called GDP. They also create massive job opportunities thereby helping the government reduce the unemployment rate. Small businesses are encouraged to know about investment companies to enable them to make informed decisions on raising capital for their businesses.
Below are some important roles Small Business Enterprises play in an Economy.
The Economic Plan:
Small businesses have spillover effects in that they contribute to the development of national resources by involving in activities such as agriculture for the food trade, the integration of the artisanal sector for a company, and providing the day to day needs of the populace.
Downstream, they contribute to the development of the tertiary sector, in the same way, they contribute to the increase of gross national product. The creation of Small businesses particularly favors the diversification of the industrial structure, at the same time as it helps to exploit unused resources thus concealing the formation of capital.
Indeed, when the demand for a specific product is very high and could not be catered for easily, business people tend to import from other countries. Small and medium-sized enterprises, therefore, facilitate the substitution of local manufacturing for imports.
Not only are Small businesses the engines of growth and job creation at the local level but they also increasingly contribute to meeting priority challenges, particularly concerning sustainable development and the … Read the rest