By Morgen Makombo Sikwila
The role and functions of (Small to Medium Enterprises (SMEs), is considered vital in the development of local economies, broad-based empowerment, job and wealth creation contributing significantly to the country’s Gross Domestic Product in today’s globalized world though relatively smaller in scale, unlike large corporations.
Small businesses greatly contribute to local economic growth. Though small, they might not make as much profit compared to large ones, but these businesses are really helpful in opening job opportunities and hence decreasing the unemployment rate. By offering new job opportunities, SMEs help generate regular and sustainable income for local communities, strengthening the national economy.
Small businesses form an important economic cycle that keeps the economy in motion. With more small businesses operating in a country, there is a potential for greater local economic growth. These businesses contribute to the rise in the living standards and increased demand for local products and services.
Small to Medium Enterprises are also the source of innovations and creativity. Many of these are problematic during scaling and growth, motivating them to get creative in looking for solutions that might fit certain market needs. For instance, business owners of a small company usually innovate and are much willing to take risks. They also keep on developing new products to cater for consumer needs through ingenious methods.
Entrepreneurship in small businesses acts as a driver for market renewal. Innovation in these companies increases healthy competition with bigger corporations and the quality of products and services for consumers. Besides, small businesses meet specific individual needs and solve social and economic problems by offering innovative solutions.
Small businesses directly effect and affect the life of a local community. Since many of them operate in local markets, their contributions to the living standards in the communities become significant. Small to Medium Enterprises develop the infrastructure and communities locally with the facilitation of employment opportunities and improvement in local economic activity.
When SMEs succeed in an area, demand for local services increases, further driving local economic growth. This direct impact makes small businesses a key driver for local economies, supporting the development of bigger enterprises and infrastructure, thereby strengthening the local community.
One of the prime advantages of Small to Medium Enterprises is their adaptability to the quick changes in the market. Due to their small size, they can easily respond to shifts in market trends or economic demands much quicker than large companies. SMEs are more capable of putting up with changes in the economy or market fluctuations than large enterprises.
Quick adaptation to changes in the market enables SMEs to be flexible and to grow more in a tough economy. It is this very factor of adaptability that renders them more resilient and capable of thriving in an ever-changing economy.
Apart from providing economic benefits, SMEs investments yield personal benefits; individuals are further developed, with ample capacity to exercise, develop, and acquire new sets of skills in entrepreneurship. Furthermore, these businesses contribute to creating both training and job opportunities that offer a means of further personal and professional development of workers.
Working with SMEs provides an avenue for people to acquire new skills in management, marketing, and finance, thereby developing their capabilities and furthering their careers. To investors, SMEs can also be a source of personal growth and learning.
The investment in SMEs is not only a source of profit but also a means of encouraging local economic growth, innovation, and community building. Besides, it provides great opportunities for personal and professional self-improvement that contribute to an increase in the living standard. An investment in small business is a strategic step toward building a strong, sustainable economy that benefits all segments of society.
Small businesses must, therefore, be envisioned and capitalised as avenues to creating an innovative and sustainable economic future, not just the creation of jobs. Invest in small businesses and become part of growth that propels communities to success.
Morgen Makombo Sikwila
MSc in Peace and Governance
BSc Counselling
Diploma in Environmental Health
Certificate in Marketing Management
Email: morgensikwilam@gmail.com
Phone Number: 0772823282
