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What is it about enterprise that is seen as so important in economic development? New businesses provide choice, dynamism, competition, employment, are locally owned and committed to the local area and act as the seedbed function, a vital contribution to the long run health of the economy.
Answer:Small and medium enterprises (SMEs)1 are widely seen as engines of economic growth. In developing countries, SMEs provide over 70% of formal jobs on average2. SMEs are also thought to promote poverty alleviation and long-term economic growth through improved productivity, innovation, and social mobility. However, SMEs face constraints to growth that are particularly binding in developing countries.
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