The growth of the SME market is necessary for the countries and their economies to grow. When the governments of a country give a free hand to do business to the SMEs, the SMEs provide them multiple benefits that are very helpful for the countries. They could help the countries in economic growth by wealth and job creation.

SMEs also increase the exports of the country. The biggest example of this is that SMEs directly contribute almost 68% of China’s exports. Therefore, if other countries also want to succeed economically, they need to strengthen their SME market. Those countries must control the factors that put limitations on the SMEs and discourage them.

Below are the factors that affect the SME and its growth.

Law and order situation

Suppose the law and order situation of a country is good. In that case, the small and big investors will have confidence in the country, and they won’t hesitate to invest their money in different businesses. Like many foreign investors want to invest their money in European countries, only a few will go to the Middle East because the law and order situation in those countries is vulnerable.

Availability of the labour

Countries with many young and jobless people are more suitable for the business community than those were the young population is less in numbers. The big and small countries want educated and cheap labour to work efficiently and take less money. That is why many multinational companies open their call centers in Asian countries.

The people of the United Kingdom receive calls daily from those Asian call centers controlled by different companies in the UK. These companies open their offices in Asian countries just because their labour is available at cheaper rates.

Globalization

If small businesses want to grow, they need to open up spaces for themselves and reach the international market. When China’s market was limited to China only, they could not succeed in the market and increase its exports. So, reaching the global market is not the choice; rather, it is a necessity.

Competition

Another factor that affects the growth of the SME market is the competition in the market. If there is huge competition in the market, it could lower their revenue, but one thing is guaranteed: steady growth. Healthy competition is beneficial for small and medium businesses and consumers as they could get the products and services at lower prices. For more information visit our Website