How SMEs Contribute to The Community’s Welfare
The Word SMEs rises a lot in different platforms, however people underestimate its power and how it should be used as a tool to improve the community’s welfare. Egypt’s economy would drastically change if both the government and the people understood the worth of SMEs.
What Are SMEs?
The word ‘SMEs’ stands for small and medium enterprises, they are independent firms that employ a rather smaller amount of employees. Its definition differs from one country to the other depending on the rules set by the government. In most countries, just like the European Union countries, it is bound to have a maximum of 250 employees and a maximum annual turnover of 40 million euros, however in other countries like the United States, SMEs can employ up to 500 employees.
How Do They Contribute to The Economy?
Surprisingly, there are more than 2.5 million SMEs in Egypt. Accordingly, they represent 75% of the total employed workforce and 70%-80% of the country’s GDP. The success of SMEs helps create job opportunities, as large business enterprises usually downsize to cut down on costs and outsource most of their services. In addition, SMEs increase the level of competition, which is always healthy for a community to develop and for businesses to advance and grow.
SMEs give businessmen the room to be creative and test their new ideas in the market, as you don’t need to have a huge business with miraculous costs; which eases innovation. The market gets to be diversified, which improves efficiency and productivity as well because the economy grows in different diversified markets.
Do SMEs Always Stay Small or Medium Sized?
This is a misconception that many people have. Starting up a new small or medium sized business doesn’t necessarily mean that it will stay small forever. To the contrary SMEs are always the start of large international corporations. Look around and you will see how many of the successful enterprises with international presence affect the world now. With one small business idea, one can change the whole world.
What Are Some Of The Most Successful SMEs Around The Globe?
By definition, a successful SME is an enterprise that was once small and now is on a growth road with green tickers of growth and development.
We All Know one of the most famous social media platforms, the platform that literally changed the world with its innovation and creativity. It all started as a small idea to connect people within the same university campus, but amazingly the idea grew and developed till it became the Facebook that we all use on daily basis. Facebook changed the concept of networking globally.
It all started by someone who is passionate about developing an idea that would make people’s lives easier, especially in the Middle East region. This startup is now one of the most acknowledged enterprises, it grew to the extent that it is competing against Uber which is a well established company with great presence in many international markets. A small idea like Careem or Uber helped communities develop by providing services that people need.
This is a local brand that is currently selling its high-end hand made bags to international markets. It all started by two sisters who wanted to develop a startup that goes with their passion of fashion and design. One small idea grew into a business that sells in international markets to super starts and public figures allover the world.
In a nutshell, every business idea can be developed to becoming a large corporation that can have international presence and effect. SMEs are just the start of a developed and a successful economy.