In business world, small and medium enterprises have a long history of service for providing employment opportunity to the people of country. It increases the ability of people to make them more innovative and to cope with unemployment crisis. Small and medium-sized enterprises (SMEs) are seen as a key to economic growth, innovation and employment growth significant employment potential, revenue generation and technological advancement in most economies. It is very important sector in both developed and developing countries. In Pakistan, SMEDA defines Small & Medium Enterprises, as approved in SME Policy 2007, as an enterprise that has up to 250 employees, or a paid up capital of 25 Million PK Rupees, or an annual sale of up to 250 Million PK Rupees. The Federal Government, in line with the economic development of Pakistan may, from time to time modify the eligibility criteria as it sees fit. All providers of services receiving funding from the Government may define more narrow scopes for specific targeting purposes (Smeda, 2007). In developing countries like Pakistan SMEs play very important role by providing employment opportunities. SMEs provide platform to people to establish business with minimum capital. SMEs development depends upon many factors like infrastructure, finance, labor, location and market, political, law and order situation. The structure of SMEs changes in term of size, work force, market and outcome as they develop. Recently in literature there is an issue about the existence of SMEs with increase in economic development of developing countries. Another issue which requires research is that how much government support requires for SMEs development (Tambunan, 2008). This study aims to address both issues in... ... middle of paper ... ...c Studies, 4 (2). pp.ÿ113-136. ADB (2004), ADB to Help Foster Development of SME Sector in Bangladesh, Asian Development Bank, Mandaluyong, available at: www.adb.org 2004. SME. Washington DC: World Bank Group Review of Small Business Activities. Narain, S. (2003), “Institution capacity building for small and medium –sized enterprise promotion and development”, Investment Promotion and Enterprise Development Bulletin for Asia and the Pacific, No. 2. Quddus, M. and Rashid, S. (2000), Entrepreneurship and Economic Development: The Remarkable Story of Garment Exports from Bangladesh McDowell, S.D. (1997). Globalization, liberalization and policy change: A political economy of India's communications sector. Minton, A.A. (2006), “SMEs in Bangladesh Harvie, C. (2003), The contribution of micro-enterprises to economic recovery and poverty alleviation in East Asia
Zeller and Sharma (1998) argue that SME’s aid in making the difference between alleviating poverty and ensuring economically secure life. On the other hand, it can be recognized that SME’s tends to stabilize and increase income as well as tending to preserve and create jobs.
In Malaysia, business sizes can be divided into two big groups, which are small medium enterprises (SME) and large companies. There are various definitions of SME that are widely used in Malaysia. Although different organisations have different ways of defining SME, most of them usually include annual income generated, number of full-time employees and/ or total fund available. A widely used definition of SME is by the Small and Medium Industries Development Corpo...
The Ready-Made Garments (RMG) industry contributes to the Bangladesh economy in a distinctive manner. The last 20 years witnessed unparalleled growth in this sector, which is also the largest exporting industry in Bangladesh. It has attained a high profile in terms of foreign exchange earnings, exports, industrialization and contribution to GDP within a short span of time. The industry plays a significant role in terms of employment generation. Nearly two million workers are directly and more than ten million inhabitants are indirectly associated with the industry. In addition to its economic contribution, the expansion of RMG industry has caused noticeable changes by bringing more than 1.12 million women into the workforce. Hence it is quite apparent that this sector has played a massive role in the economic development of the country.
The export sector within Bangladesh has grown to become an increasingly significant component of national trade, and has involved significant private sector investment over the last decade. The connection of production networks commonly involving small-scale producers, and traditional market and distribution systems, to supply raw materials for products meeting international standards, offers particular management and logistic challenges. Export has been improved markedly with strong external current account position and much larger capital and financial account inflows, leading to a rapid reserve buildup. The combination of a strong current account position and a large financial account surplus contributed to a sharp improvement in the overall Balance of Payment (BOP) position and a consequent rapid buildup of external foreign exchange reserves. Foreign exchange reserves of Bangladesh Bank (BB) crossed the US$ 18.00 billion in last year. The high level of reserves will also help maintain and further improve Bangladesh’s sovereign rating, which will help catalyze higher Foreign Direct Investment (FDI) in Bangladesh. The export sector earned US$ 27.00 billion in 2012-2013 with a target reaching US$ 30.5 billion in 2013-2014 fiscal year. During July-January 2013-2014, Bangladesh recorded US$ 7.18 billion in exports of woven garments, up 17.32 percent from the US$ 6.12 billion during the same period in last fiscal year. The knitwear export witnessed an export of US$ 7.00 billion in the July-January, 2013-14 periods, up 18.13 percent from the US$ 5.19 billion during the same period of last fiscal year. The knitwear export saw its income up by 9.00 percent and the woven garment export up by 3.00 percent, compared to the target that was...
SMEs is abbreviation of the small and medium enterprises meanwhile the collectively called of small enterprises and mediums enterprises, it occupies a number of more than 95 percent of enterprises in the whole word. In Singapore, the percent of SMEs is reach up to 99 percent of the companies, it represent and epitome most of the companies in Singapore. The definition of SMEs in Singapore in term of their numbers of employees and annual sales turnovers, business turnover are not more than $1oo million or the number of employees is less than 200. They hire the seven out of ten employees in labor and also make contribution in the nearly a half of Singapore GDP.
The small and medium enterprises (SMEs) are expected to play a significant role in the growth story of the country's pharma sector as they contribute 35–40 per cent to the industry in terms of production with a turnover of about Rs.35,000 crore (US$ 5.70 billion).
Small, medium enterprises (SMEs) are largest types business in the world, making up an estimated 99.7% of business. According to the Federation of Small Businesses (FSB) there are nearly five million existing businesses in the UK as of 2013. SMEs are a key contributor towards economic growth in terms of creating more employment, stimulating innovation and promoting social unity. SMEs are responsible for 47% of private sector employment, yet despite such global present there is still no agreed definition of a SME (Storey 1994). Bolton (1971) attempted to define them through a statistical and economic analysis. Classifications which are based on criteria, such as number of employees or annual turnover, however, do not remain consistent across borders. Given their size, smaller companies tend to be more intent on survival rather than expansion and profit maximisation. Smaller sized firms have always felt that the current reporting framework for IFRS is tailored more for the needs of larger companies and that the heavy cost burden it imposes upon them may not be entirely justified. In response to these concerns, the IASB subsequently issued the IFRS for Small and Medium-sized Entities (IFRS for SMEs) in July 2009. This standard offers an alternative framework which can be adopted by entities in place of the already extant full set of IFRSs or local national requirement standards.(Holt 2010) This essay will critically evaluate the impact of the IFRS for SME’s and whether or not it stands as the most suitable framework available for SMEs to use.
Small and medium enterprise (SME’s) have very important role in the economy. Their contribution in increase in production, employment, number, and exports over a period of time is tremendous. The role of SME sector in the overall nation building is well recognized across the globe.
These type of organization are important in three areas: job creation, new start-ups, and innovation. Small businesses just getting off the ground create new jobs and seem to have more stability. Innovation leads to technological changes and employment growth.
There are various definitions of smaller enterprises provided from different times and areas. One of the earliest definitions was provided by Bolton Report (1971), which has indicated that a small enterprise should meet three criteria: independent (not part of a larger enterprise); managed in a personalized manner(simple management structure); relatively small share of the market(the enterprise is a price ‘taker’ rather than price ‘maker’). There are also quantitative definition of the smaller enterprise in terms of measurement of the assets, turnover, profitability and employment from different sectors and countries (Bolton, 1971).
SMEs globally face difficulty in accessing finance from conventional financial institutions and the International Finance Corporation and World Bank efforts at improving the finance problems of SMEs reveals that different environment face contextual finance problems requiring home-grown, tailor made strategies to manage and overcome this predicament. SMEs in the two continents find it very difficult to access loans from the banks; most credit officers lack an in-depth understanding of SMEs business cycles, and averse to lending to them. The Central Bank of Nigeria has continually encouraged banks to design special product lines aimed at meeting their financing needs, yet most commercial banks favour the big
...ed is all in accordance with the literature presented for this research. Data is also gathered on fairly large scale which is quite useful for this type of academic research. Data collection directly from entrepreneurals by using skype and face to face interviews is good technique as there are quite useful for distant respondents and quality criteria is also measurable .However, for me it was hard to find about the type of business each entrepreneural having because it is important to know the business tpe as every business has different aspects to be considered. The entrepreneural in textile industry might not follow same rules and restriction as compare to entrepreneural in service industry. It would have been great if authors have clearly mentioned each business type . As a reader it was not easy for me to follow the analysis section with its overall results.
Access to capital and credit at various stages in the business life cycle is identified as the major hurdle by the entrepreneurs. For many small firms and most start-ups, the personal funds of the business owners and entrepreneur and those of relatives and acquaintances constitute as the major source of capital. For many small businesses, especially during the early years of their operation, credit is simply not available. For many others, the limited available credit is not through bank loans. Due to this many of them rely on multiple credit card balances and home equity loans as major sources of credit for start-up firm. Because banks are bound by laws and regulations to prudent lending standards that require them a risk management assessment for each loan made. These regulations were made more vigor during the late 1980'' and early 1990 . Banks always found that lending to manufacturing firm with hard asset such as property, equipment, and inventory has always been easier than lending to today's expanding service sector firms. Because the service sector firms own few hard asses, therefor lending judgment have to be based in terms of character, markets, and cashflow, which make it difficult to the bank to meet the regulations for the approval of the loan. Additional, the banking industry, as well as the entire financial sector of the
Altaf Hussain Sumo “Small Business in Pakistan: Characteristics, Problems and Sources of Finance”. Downloaded from http://sbaer.uca.edu/research/icsb/2009../paper141.pdf
Within every major economy, a great factor in providing the energy of the core of the nations economy is the small and medium enterprises. These cluster of firms are what provide new economic activity, new innovative products and services, along with growing employment and in general a crucial system in ensuring the economy is at a stable growth level. With a majority of this activity stemming from family controlled or managed businesses, the focus on developing a global and long term perspective for these firms are ever growing in importance because of the global perspective entrepreneurship has started to take.