SMEs play avital role in a nation’s economic development. In developing countries, SMEs play an important role in creating jobs due to the following factors:
Production via labour-intensive techniques: SMBs produces goods and services in a more labor-intensive manner than much larger enterprises, resulting in the creation of more jobs and a more equitable distribution of income.
Providing more opportunities: Due to their simple and value-added work processes, SMEs provide a greater number of opportunities.
Promote entrepreneurship: The SME sector contributes to and supports a variety of entrepreneurial activities.
Development of a strong economic system: Small and medium-sized enterprises contribute to the development of productive capacity and the creation of strong economic systems.