GENEVA, July 26 (Xinhua) -- Small- and medium-sized
enterprises (SMEs) boost job creation in developing countries, said a
study published by the International Labour Organization (ILO) and the
German Agency for International Cooperation (GIZ) Friday.
Source from (Xinhuanet): http://news.xinhuanet.com/english/business/2013-07/27/c_132578049.htm
Published: July 28, 2013
The study, titled "Is Small Still Beautiful?
Literature Review of Recent Empirical Evidence on the Contribution of
SMEs to Employment Creation," concluded that SMEs provide two-thirds of
all formal jobs in developing countries in Africa, Asia and Latin
America, and up to 80 percent in low income countries, mainly in
Sub-Saharan Africa.
More important than holding the majority of jobs in low income and
emerging economies, SMEs made a key contribution to the net creation of
jobs, especially smaller and young firms, according to the study which
noted that 50 percent of total employment creation came from enterprises
with less than 100 employees.
But SMEs faced specific challenges, including the difficulty to
access finance, greater burden from regulatory frameworks, and cost
disadvantage to expand in relation with bigger companies, as the study
pointed out.
The study called for targeted policies for SMEs since they were key
engines of the real economy and the seedbed for bigger enterprises,
having recommended to improve the business environment, improve access
to finance, and stimulate the entry of new enterprises.
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