Impact of SMEs on National Economy: Comparison between Micro, Small, Medium and Large Enterprises

V
The impact of SMEs on the Economy
Introduction
The fact-sheet will outline the impact of small, medium and large enterprises on national economy. The
interpretation has been done with relevant facts and data that exhibits the impact on economy. It
demonstrates the comparison between the influences that micro, small, medium and large businesses
have on the nation's economy.
Interpretation and analysis of the relevant information to know the impact of
SMEs on economy.
In corporate sector, it has been sensed that micro, small, medium and large enterprises possesses a
significant role within the development of UK' economy. These enterprises help in creating employment
opportunities for the people living in a country. They help in bringing innovative and fiscal
dependencies in the company. The following is the discussion on different types of enterprises:
Small business: These enterprises are relatively privately owned businesses in which number
of employees are few and generate low revenues for the business. This is the concept of start-ups and
self-employment. In this category, entrepreneurs differ as per the size, number of employees, nation and
so on. The number of employees are generally less than 50.
Micro business: These enterprises have low annual revenues and sales and also not more than
five employees are involved in the business. Most commonly used examples are computer services,
catering and so forth. These businesses rely on different sectors of the nation.
Medium businesses: These are businesses in which amount of employees are approx. 250 who
work together for the purpose of rising yearly income, sales and revenues. These fiscal assets of the
company are basically investors and lenders and for this, they have right to make business choices.
Large business: These enterprises runs their business at international level for the purpose of
boosting business efficiency and productivity and supports in attaining a better place in the making of
products and services as it assists in attaining sustainable profits suitably.
From the above figures, it is analysed that micro businesses are offering almost 96% of their con
to the national economy in comparison with medium and large enterprises. It is also sensed th
enterprises are evolving 15% of the job opportunities in the country while, large businesses ar
40% and medium enterprises are contributing 15% to the country. Lastly, large enterprises have
turnover rate i.e. 48% against small or medium enterprises.
The micro and small enterprises carries a vital place in the development of economy by utilising
and innovative ideas, advanced technology and much more. These elements influence the op
activities of the business and supports in attaining business sustainability, together with profitabili
dynamic environment of business.
The importance of micro and small enterprises is that it helps in increasing employment opportun
highly contribute in the economic development. It affects the national economy which brings pr
relevant data with facts and figures. As per this concept, it is supportive in exhibiting the enterpris
purpose to grow private sector and also rises the number of employment for the country.
Additionally, these enterprises does not allow much likelihood in the employment of qualified wo
rather they employ less qualified and skilled employees in their business and emphasise on p
training to them to be fit in the position of job. Due to this fact, employee engagement rises in the
and less skilled employees contribute their efforts in the attainment of productivity and economi
of the business environment.
.
Figure 1 Business statistics