The economy of the 20th and 21st century has a different set of rules than Smith‘s
economy of the 19th century. The new ideology of neo-liberalism and globalization
emphasizes the role of SMEs as promoters of a healthy business climate, economic efficiency
and power for economic development, especially in developing countries. Today, instead of
large-scale industries, SMEs having gained importance in the developing economies, become
advantageous being economic enterprises having the capability of quick adaptation, working
with less capital but more intense labor and having low cost of management and thus having
cheap production. Although SMEs have some weaknesses, they are less affected from
economic crises due to its flexibility and abilities which keep up with changed conditions.
SMEs are vital actors for enhancing innovation, competitiveness, entrepreneurship and the
establishment of an effective innovation system for developing countries. Therefore, in this
study the importance of SMEs for developing countries is considered. First, the regulations
related to SME definition and EU‘s SME definitions are mentioned. In the second section, the
advantages and disadvantages of SMEs are considered. Then, the importance of SMEs in the
economies is discussed by groups of countries with the help of various indicators. Finally, the
importance of SMEs in developing countries is discussed
Is data on this page outdated, violates copyrights or anything else? Report the problem now and we will take corresponding actions after reviewing your request.