The Economic Role of SMEs In World Economy, Especially in Europe

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Firm Innovation and Growth Global trade and economics Economic and Industrial Development

Abstract

Small and medium-sized enterprises (SMEs) are a very heterogeneous group of businesses usually operating in the service, trade, agri-business, and manufacturing sectors.They include a wide variety of firms such as village handicraft makers, small machine shops, and computer software firms that possess a wide range of sophistication and skills.Some are dynamic, innovative, and growthoriented while others are satisfied to remain small and perhaps family owned.SMEs usually operate in the formal sector of the economy and employ mainly wage-eaming workers.SMEs are often classified by the number of employees and/or by the value of their assets.The size classification varies within regions and across countries relative to the size of the economy and its endowments.It is important to note that there is a minimum as well as a maximum size for SMEs.

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