Prospects of SMEs in Fostering Economic

Transcript:Prospects of SMEs in Fostering Economic:
Prospects of SMEs in Fostering Economic Development -Bahrain Model Ms. Sabah Almoayyed October 2003 Introduction Definition of SMEs Importance of SMEs General Investments in the GCC The Bahrain Experience Challenges for the Industry Prospective Role of Women Conclusion Content The subject I am addressing is, ‘The Prospects of Small and Medium Enterprises in Fostering Economic Development — A Bahrain Experience" may be too vast a subject. It takes some serious efforts to sum it up in such a limited time as this. But, I will strive my best to highlight the most relevant points and focus on Bahrain as a case while concluding my presentation. Contents 1 Varies from Country to country Capital allocated by one individual or a limited number of individuals Managed by Owner Limited Market access Economic Sectors Level of Economic Development of a Country Amount of Capital Number of employees Definition Definition Definition Definition of SME SMEs are mostly concentrated in manufacturing and processing industries. In developing countries they are involved in handcrafting industries and community, social and personal services. What makes an SME typical is its unique economic and organizational characteristics. It is generally not capital intensive and is run by very few people, mostly immediate family members. Due to this, it does not have any complex management structure or corporate hierarchy. The activities often require low level of technology and plays the role of ancillary industry while providing a ready market. 2 The Importance of SMEs Primary Source for Vitality Pool of Skilled and Semi-Skilled Workers Increase Productivity & Employment Promotes Economic Stability “Complementary To” and Not “IN Competition With” Large Scale Industries This applies to economies worldwide by generating activities that often result in increasing productivity and spurring competition and the need to improve the quality output and control coasts in the market place, thereby promoting economics stability. They also provide a productive outlet for expressing the entrepreneurial spirit of individuals and assist in dispersing economic activities throughout the economy. As competition heats up, entrepreneur hone their skill in an ever changing market place. Later their success become a benchmark for other to duplicate or probably surpass. SMEs are effective in sub-contracting with large scale industries thereby addressing a flexibility to industrial landscape complementing the activities of large-scale industries. 3 Contribution of SMEs Again, there are varying percentages for contribution of SMEs, But the general trend is their tangible contribution to the actual