News ID: 325416
Published: 0431 GMT November 16, 2022
EXCLUSIVE

Empowering SMEs to help create 1m jobs annually

Empowering SMEs to help create 1m jobs annually

Hamidreza Gol-Mohammadi Advisor to Omid Entrepreneurship Fund CEO

The prosperity of small- and medium-sized enterprises (SMEs), especially in rural areas, can increase the sustainable employment, lower poverty and unemployment, help ensure distributing welfare and reduce the class discrimination as well as boost the gross national income, and as a result, lead to sustainable growth and development in a country.

As one of the driving forces of the modern economy, SMEs play a significant role in improving employment opportunities and strengthening technological innovations.

Despite the need for less investment, the enterprises have more efficiency and can more easily adapt themselves to rapid environmental changes and react more quickly.

Dynamism, networking, high flexibility, creativity and innovation and benefiting from new information technologies are the most important characteristics of SMEs.

As the statistics indicate, in developed and developing countries, SMEs have a significant contribution to the gross domestic product (GDP).

In the United States, more than half of the GDP and exports is made up by SMEs.

In Asia, the giant economies are heavily dependent on small businesses. For example, more than 80 percent of all Japanese employees work in SMEs.

SMEs are usually under pressure due to their limited internal resources, especially financial and management ones.

The limited financial resources of SMEs make it difficult for them to obtain the benefits of innovative activities, particularly in the field of research and development (R&D) and marketing of innovations and their new products.

Compared to large companies, SMEs have less ability to influence the external environment, such as customers, suppliers, and the workforce market.

Considering the above, governmental support in financing and empowering these businesses seems essential.

Since one of the main goals of Iran’s 13th government is to create one million jobs every year, serious and effective attention and planning has been done for SMEs, the results of which will be tangible in the future.

 

 

   
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