The International Institute for Science, Technology and Education (IISTE)
Small and Medium Enterprises (SMEs) are generally thought to play a crucial role in driving economic growth in both developing and developed countries. As a group, they generate more new jobs than large firms. They introduce innovative ideas, products, and business methods. And they can push economic reforms and the modernization of uncompetitive economies. Growth and modernization in the SME sector are often associated with successful economic development, particularly in lower-income countries. In turn, such growth and modernization are associated with general poverty reduction. Proponents of SME development argue that these enterprises play a crucial role in driving economic growth in both developing and developed countries.