Definition of SME's
SMEs (also known as small and medium-sized enterprises) are businesses defined by a specific number of employees and revenue. The term is often used interchangeably with SMB, which stands for small-to-midsize business. It plays an important role in the global economy by contributing to employment, economic growth, and social development.
Important Roles of SMEs in the Economy
SMEs always play an important role in the field of Employment, Economic Growth, Innovation, Regional development, and more
- SMEs are a significant source of employment, accounting for up to 70% of the global workforce.
- SMEs boost economic growth by creating added value and driving GDP, where SMEs contribute more than 50% of GDP in most OECD countries
- SMEs tend to be more innovative and adaptable than larger corporations, fostering technological development and innovation.
- SMEs are crucial for the growth and development of regional economies, particularly in rural areas.
Important Role of SMEs in India
SMEs account for 30% of India's GDP and provide employment for 110 million India's people, representing more than 40% of the country's total exports.