If we are to categorize businesses, there would be plenty to fill that diagram. One of them would be Small and Medium Scale Businesses, better known as SMEs, which have become quite popular in the recent past among buyers. They have quite a vital role to play in the economy of a country as they are factors that drive certain macroeconomic variables in a country. Following are some of the benefits received by these SMEs for a country’s economy, which signifies the role it plays in your life as well.
SMEs have become a major contributor in the employment opportunity arena. As not everyone is fortunate enough to land on a stable government job that comes with a pension scheme, these type of business are able to save the rest of the people that are suffering without jobs. Working in these firms will even give more attention to the employees and maintain their well being as a duty. Due to this factor, the economy of the country will be benefited as the unemployment rate goes down, hence resulting in a better country to live in.
Although they may be called small scale, it doesn’t necessarily mean that they are small or tiny. They too have the capability of striking up some good competition to the existing business; even for the large scale ones. They have the ability to cut down monopoly of certain companies and boost the competitions, which at the end will benefit the customers with better quality products for them to purchase.
It is common knowledge that large scale companies and their mass productions leave behind quite a large pile of waste for the environment to handle. However, if they do not act accordingly to the triple bottom line of sustainability and reuse them, fear not, as SMEs have come to the rescue. At present, they make perfect use of this wastage material in order to produce their products. In this case, while making use of waste and saving money, they also help save the environment by preventing the scrap material going to garbage dumps.
When the firm is smaller, it is much easier to keep up with the customer relationships. Why? They can look into customer needs, customize and become very flexible in providing the required products. Therefore, customers will be more drawn to the company and will be impressed by their bureaucratic procedures.
Therefore, these companies play a huge role in today’s business world and the economy than we have ever imagined before.