Economic growth and national development in any economy can be achieved by boosting the growth of Small and Medium Enterprises. Small and Medium Enterprises or SMEs can help improve employment opportunities and aid in social integration. SMEs register the highest level of employment among all the other sectors. Today, 66.8% of total employment in The European Union comes from SMEs. Small firms in The European Union are those with less than 50 employees whereas, in case of medium firms, employees range from 50 to 249.
Role of SME’s as a major cause of economic development – The MED Way
Prior to the 1990’s, the emphasis was on boosting the large-scale industries. The changing scenario has made us understand that a macroeconomic structure can be better off for the economy – reason there is more emphasis on SMEs.
How does MED help?
MED helps small and medium companies grow and use workforce resources wisely while understanding the trends and challenges. Adopting the innovation in the workplace remains a concern and can set back the organization development. MED supports management skills to support leadership. Solid technological advice helps enterprises to make strategic decisions that pay off – further contributing to national development.
In the global context, 90% of the private firms employ 50-60% of the labor force. The annual report on The European Union states that more than 99.8% SMEs are the source of private investments, economic development, and employment opportunities.
The Backbone of European Economy – SME’s
Be it any European economy, the contribution of SMEs to Gross Domestic Product and employment is significant. MED is working to develop the SMEs at large. According to the World Bank, SMEs contribute around 55% of GDP in high-income European countries whereas GDP in middle and small income countries are over 70%. SMEs, while providing employment to large number of people, also contribute to high exports and revenues, reduction of the social problem, decreasing inequalities and regional disparities.
