Economic Impact Of Smes On The World Economy - 4487 Words

Literature Review Economic Significance of SMEs SMEs play a critical role in the stage of world business. This is evident from the fact that they form 95 % of the enterprises in the world and thereby contributing approximately 60 % of private employment (Ayyagari et al. 2011). SMEs can be found as a vital aspect of economic prosperity and social conditions in the case of certain developed countries such as Japan where 99 % of the total enterprises are SMEs (EIU, 2010). Further in the case of developing countries like India as well, SMEs play a pivotal role in economic development and this is evident from the data from Ministry of Micro Small and Medium Enterprises that there are 13 million SMEs in India as of 2008 statistics which is†¦show more content†¦SMEs and Internationalisation It is argued that since the middle of twentieth century, the world economy has witnessed rapid internationalisation of markets, industries as well as companies. These changes in business environment are reflected in the accumulated research on international marketing, entrepreneurship and other allied areas. Nonetheless, even in the presence of many theoretical frameworks, internationalisation is still challenging for SMEs (Olejnik and Swoboda, 2012; Jones and Coviello, 2005). According to Welch and Luostarinen (1988, p. 36) define internationalisation as â€Å"the process of increasing involvement in international operations. This definition implies that internationalisation is a process of gaining experience outside of the domestic boundaries of an organisation. One of the widely used and discussed models in the area of internationalisation pertaining to Multinational Enterprises (MNEs) as well as SMEs is Uppsala model. As per this model, internationalisation is a self reinforced as well as incremental learning process where in gradual knowledge of foreign markets is gained by companies and based on the confidence gained of such experience and learning they increase theirShow MoreRelatedImpact Of Small And Medium Sized Businesses On Jobs And The Economy1602 Words   |  7 PagesRunning head: SMEs​ 1 The Impact of Small and Medium Sized Businesses on Jobs and the Economy Name: Institution: Outline 1. Introduction Introduces the discussion and gives a thesis statement 2. Discussion Explores the contribution of SMEs to the economy, gives detailed statistics from various academic sources. It also offers an explanation of the impact of the 2008 financial crisis to the SMEs contribution to the economy in regards to employment 3. 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In order to survive and stay competitive, SMEs implements a vary of approaches or strategies, such as by adopting internet-based or web based (e-commerce) in their business. Many studies argued that e-commerce is very useful for SME in orderRead MoreChina Business Sme5201 Words   |  21 PagesChinas market reforms and accession to the WTO has led to its economy growing rapidly, to the point where it is now the fourth largest on earth, and is expected to be in the top two within the next decade (Business Monitor International, 2006). As a result, Chinas SMEs are now facing an economy flooded with foreign capital, and with a more open economic climate than in previous years, but also a much more competitive economy, where many of their previo us practices are no longer relevant. 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