Entrepreneurship (MGT 602) Fall 2013
GDB No.02
Due Date: 26-01-2014
Marks: 20
TOPIC: Role of SME in Developing Market Economies.
LEARNING
OBJECTIVES: Objective of this activity is to enable the students
understand the growth of small and medium enterprises in the market
economies.
LEARNING OUTCOMES:
After attempting this assignment, the students will be able to know:
Social implications of Small and Medium Enterprises (SMEs).
The factors that creates hurdles in Small and Medium Enterprises.
Case:
The Small and Medium Enterprise (SME) sector transmits countless
expectations and great loads in the development of market economies. The
SME sector is the backbone of the economy in high-income countries, and
a fundamental part of the economic fabric in developing countries, they
play a crucial role in furthering growth, innovation and prosperity.
Under these conditions, SMEs can develop the country by creating
different opportunities for its public. SMEs play an important role in
the growth of economy. One of the important features of a successful
financial system is having flourishing SMEs sector. SMEs develop the
economy through various means. It generates employment in country,
provides sustainability and improves the output of economy as a whole.
In this way, SMEs support large number of people directly or indirectly.
Constant and vigorous growth of this sector is apparently essential, as
it is hard to imagine growing overall living standards and societal
harmony without such a development.
Small & Medium Enterprises
are foundation of country’s progress and especially for the success of
people having low income. SMEs produce income for people located in
countryside and the commercial area linked with this activity. Pakistani
market rely on pace & productivity of SMEs. They are considered as
engine for economic growth all over the world. Globalization has
provided the SMEs many opportunities to work in line with large scale
organizations. From a theoretical viewpoint, SMEs have several
advantages and series of barriers that raise their operating costs and
creates hurdles in Small and Medium Enterprises.
Point of discussion Despite
of the all the advantages offered by SMEs mentioned above, it has been
observed that the pace of SMEs growth is still low in Pakistan. In your
opinion what are the leading causes that has restrained the growth of
SMEs in Pakistan till today? 20 Marks (mention at least 5 points)
Entrepreneurship MGT602 GDB No 2
