Introduction: Small and Mid-size Enterprise (SME) is very important in the modern world. Most of the people are doing work of Small and Mid-size enterprises (SME) in the world. It is the life of economics in any country. In the world, all rich countries are richest for Small and Mid-size Enterprise
(SME)Small and Mid-size Enterprise (SME): Small and Mid-size Enterprise (SME) means It is one kind of independent structure that setting on Small area with factory-made and few people are doing work. This Enterprise is keeping to the contribution of the economics. SME meaning various countries are various meaning. When people want a new business this time they start small size or mid-size firms. Because they know this size firms are starting costing is low, firms spent is low, few workers are doing work so salary figure is low, Anyone starts to small size firms with low amount and risk is low. Bank or other financial institute gives the loan easily. In the US manufacturing and SME firm. It has 500 or fewer employees. It is an own business. Its assets are $10 million less and large business assets over $10 million. In India Micro, small, and medium Enterprises’ definition as an update in June 2020. Micro Enterprises investment is above 10 core Indian rupees and turnover above = 50 core Indian rupees. Small Enterprises investment is above 100 core Indian rupees and turnover above = 500 core Indian rupees. Medium Enterprises investment is above 500 core Indian rupee and turnover above = 2500 core Indian rupee. India’s growth and contribute 48% total export in India’s by MSME sectors. In Indonesia Micro Enterprises investment 5 core Indonesian rupiah turnover 30 core Indonesian rupiah, Small Enterprises investment 50 core Indonesian rupiah turnover 250 core Indonesian rupiah, Micro Enterprises investment 1000 core Indonesian rupiah turnover 5000 core Indonesian rupiah. European Commission SME sectors are size, investment, and manpower table here.
|Company Sized||Turnover||Balance sheet total||Staff headcount|
|Medium-sized||≤ €50 million||≤ €43 million||< 250|
|Small||≤ €10 million||≤ €10 million||< 50|
|Micro||≤ €2 million||≤ €2 million||< 10|
SME effect in Economics: Small and Mid-size Enterprise (SME) is very important in economics. By SME economics are running. Most of the jobs are created by SMEs of any country. People are creating restaurants, bars, coffee houses, shops, garden businesses, garments, cotton mills, food industries, bread factories, milk, ice cream, beverage industries. Press, cosmetics, industries, and many industries. In this business people are doing jobs. For this business people get jobs with easily. Many unemployed get jobs and decrease the crime rate. For this people come to money on hand. People spent money and buy many goods. For this demand make for industries. For this many people get jobs and economics is running. Small and Mid-size Enterprise (SME) is created on a small area and invest the low amount with low manpower. For this result risk is low.
Contribution of Small and Mid-size Enterprise (SME): In 2020 American total workforce of 47.5% are working in Small and Mid-size Enterprise (SME). Its amount is 58.9 million people. In Canada, 77% of new jobs were created by Small and Mid-size enterprises (SME) between 2002 and 2012. In Australia Small and Mid-size enterprises (SME) are working 4.7 million people and total GDP of 33% coming from here. In the UK 99.3% of private sector businesses were SMEs and Total annual turnover 1.6 trillion pounds.
Advantage: Small and Mid-size enterprises (SME) is create small areas, small manpower, small capital requirement. This structure enterprise people get jobs easily and most of the people are doing jobs here. These types of enterprise owners and jobholders connected, they can their objection and solve in a short time. These types of enterprises are made near the city. So people can go to easily of this enterprise. In-country in this enterprise is a huge quantity. So the government gets more tax revenues. Government income big source from SME. In this enterprise maximum items are made by local people demand. This type of enterprise made by small area, low investment, low manpower, small quantity machinery. So product rate is low and people get low prices goods. These types of enterprise all time look of good quality. For Local products, it is easy to marketing. So people easily get these types of enterprise goods.
Disadvantage: Small and Mid-size Enterprise (SME) is a big problem is short of capital. This types enterprise are small size, so the bank and other financial institute are not supported of this enterprise. Many times this type of enterprise for financial problems or goods not sell. At this time this kind of enterprise does not pay the worker salary. Maximum these types of enterprises are situated on rented and they have no own land. This type of enterprise other problem is a management problem. Most of these enterprise owners have not any business, marketing, and management knowledge. These types of enterprise all-time requirement low-quality worker for low-level salary. So these types of enterprise workers are maximum unskilled, semi-skilled. These types of enterprises can not good quality training for their worker. So this type of worker can not produce of good quality. Especially Most of the SMEs of third world countries are not pay the worker salary on just time. On the other hand in third-world countries government is not any corporation of this SME owner. For this reason in third-world countries are not successful in Small and Mid-size enterprises (SME). These types of enterprises are not future aim and not running a long time. These types of enterprises have not any good working environment.
Conclusion: At last we can say the Small and Mid-size Enterprise (SME) is more positive and low negative. Government of third world countries if special looks of this enterprise that it will be good condition. Government can give special subsidies such as tax-free for a fixed period, low-interest loan, Free training for workers and management level, training for marketing, give the land with low rate. At this time this type of enterprise will be good running. If the government takes care of this sector for a long time, so one time of this enterprise will be a big size. For this many people are getting jobs and society comes to peace. If the government sees these sectors for a long time period, so the government gets to tax. All countries of government want to encourage the peoples for doing Small and Mid-size enterprises (SME). Because for government is not possible to arrange all people’s jobs. If every people do SME business, so that every people get work, every SME arranges jobs for other people and government gets Tax. If every people do SME business then they will be self-dependent and will be high purchase power. For this people are spent more money. Money flow coming into the market. Small and Mid-size Enterprise (SME) business is small but powerful. Most of the SME businesses are connected with the national and global economies.