Problem faced by micro entrepreneurs in scaling up their operations

Abstract

Small and medium enterprises (SMEs) play an important role in most economies, especially in developing countries. SMEs represent most companies in the world and have made important contributions to job creation and global economic development. They represent approximately 90% of companies and more than 50% of employees worldwide. The contribution of formal SMEs to the national income (GDP) of developing economies is as high as 40%. If informal SMEs are included, these numbers are much higher. Around 600 million jobs will be needed by 2030 to absorb the growing global workforce, making the development of small and medium-sized enterprises a priority for governments around the world. In emerging and developing markets, most formal jobs are created by SMEs, creating seven out of ten jobs.