Scribd Logo
Upload

Welcome to Scribd!

  • 18 views

    2.1. The Significance of Micro and Small Enterprises in Developing Countries

    Uploaded by

    Osman Osman
    Micro and small enterprises are believed to make important economic contributions globally and in developing countries. They provide employment opportunities, specialize in niche areas ignored by large companies, and are flexible. In developing countries, micro enterprises help reduce poverty by allowing people to earn income, accumulate assets, and join the mainstream economy. Studies show micro enterprises provide more jobs for low-skilled workers, contribute to lower inequality, and help agricultural economies transition to industry and services. They form the base of the private sector in poor countries and are thus key to private sector-led growth. Supporting micro enterprises is effectively a private sector development strategy that recognizes their role and the different challenges small businesses face.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd

    2.1. The Significance of Micro and Small Enterprises in Developing Countries

    Uploaded by

    Osman Osman
    18 views1 page
    Micro and small enterprises are believed to make important economic contributions globally and in developing countries. They provide employment opportunities, specialize in niche areas ignored by large companies, and are flexible. In developing countries, micro enterprises help reduce poverty by allowing people to earn income, accumulate assets, and join the mainstream economy. Studies show micro enterprises provide more jobs for low-skilled workers, contribute to lower inequality, and help agricultural economies transition to industry and services. They form the base of the private sector in poor countries and are thus key to private sector-led growth. Supporting micro enterprises is effectively a private sector development strategy that recognizes their role and the different challenges small businesses face.

    Original Title

    New Microsoft Word Document (3)

    Copyright

    © © All Rights Reserved

    Available Formats

    DOCX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    Micro and small enterprises are believed to make important economic contributions globally and in developing countries. They provide employment opportunities, specialize in niche areas ignored by large companies, and are flexible. In developing countries, micro enterprises help reduce poverty by allowing people to earn income, accumulate assets, and join the mainstream economy. Studies show micro enterprises provide more jobs for low-skilled workers, contribute to lower inequality, and help agricultural economies transition to industry and services. They form the base of the private sector in poor countries and are thus key to private sector-led growth. Supporting micro enterprises is effectively a private sector development strategy that recognizes their role and the different challenges small businesses face.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    18 views1 page

    2.1. The Significance of Micro and Small Enterprises in Developing Countries

    Uploaded by

    Osman Osman
    Micro and small enterprises are believed to make important economic contributions globally and in developing countries. They provide employment opportunities, specialize in niche areas ignored by large companies, and are flexible. In developing countries, micro enterprises help reduce poverty by allowing people to earn income, accumulate assets, and join the mainstream economy. Studies show micro enterprises provide more jobs for low-skilled workers, contribute to lower inequality, and help agricultural economies transition to industry and services. They form the base of the private sector in poor countries and are thus key to private sector-led growth. Supporting micro enterprises is effectively a private sector development strategy that recognizes their role and the different challenges small businesses face.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Download as docx, pdf, or txt
    of 1

    2.1.

    The Significance of Micro and Small Enterprises in Developing


    Countries

    Globally in every economy, micro enterprises are believed to contribute to the gross national
    product and to creating employment opportunities and often specialize in areas that big
    companies are not interested in. They are also thought to be flexible and can react quickly to the
    changes in the environment. In developing countries like our country, micro enterprises are one
    source of employment and income for the urban population. More importantly, micro
    enterprises contribute to the reduction of poverty and vulnerability of the poor through enabling
    them to break the vicious cycle of poverty, and to enhance self-empowerment, respect and
    social dignity. They allow poor people to increase their income, accumulate assets, and enter
    into mainstream society. According to the United Nations Industrial Development Organization
    (UNIDO), there is widespread consensus those micro enterprises: are labor -intensive,
    providing more opportunities for low skilled workers; are correlated with lower income
    distribution inequality; are necessary for agriculture -dependent nations transitioning to an
    industrial - and service - oriented economy (Assefa, 2004).
    It is enough to recognize that micro enterprises are the emerging private sector in poor
    countries, and thus form the base for private sector-led growth. This rational for micro
    enterprise intervention suggests that a micro enterprise growth strategy is in reality just a private
    sector development strategy, recognizing that the majority of firms are small, that they may
    face different constraints and opportunities than large firms, and that the types of institutions
    and instruments best suited to their needs may be underprovided in distorted and segmented
    markets (USAID 2006).

    You might also like