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June 24, 2018

Advantages for SMEs in the economy

  • By May Thanlwin
A worker dyes textiles at the weaving factory in Meiktila in central Myanmar. Photo: Chan Tha (Meiktila)

Small and medium-sized enterprises (SMEs) play an important role in the country’s economic development and are pioneers in creative entrepreneurships which can better adapt to the changing market demands more than larger businesses. The SMEs include any type of industry or services, retail and wholesale, logistics businesses, agriculture, education, healthcare, electricity, transportation, energy, infrastructure, tourism and so on. The SMEs are a fundamental part of the economic fabric in developing countries, and they play a crucial role in furthering growth, innovation and prosperity.
Every product or service that we use in our daily lives is from an SME, which makes them an indispensable part of existence. Thus, SMEs can be regarded as the lifeblood of a country’s economy.

Poverty alleviation schemes
For developing countries, SMEs should be treated as a way to alleviate poverty first, rather than to be used to become a wealthy nation. Some causes of poverty in a country are mainly due to a lack of opportunity and efficiency. It is evident that many countries in the world are closely interrelated in many sectors such as economy, health, sociology and politics. With the aim of boosting the country’s development, many branch offices of SMEs have been opened across the country since 2014. Concerning SMEs, the Government has classified human resources, technical and creative support, capital funding, better infrastructure, gaining a foothold in the marketplace, imposing reasonable taxes and regulations and creating suitable business environments as top priorities.
Cooperation is needed to strengthen the framework at the national, state and regional levels. Moreover, under the current situation, while the country is trying to link with global markets, it is a matter of great importance for the nation’s SMEs to hold strong places in local markets, too. With the increasing amount of import substitutes, commodity prices will decrease and citizens will have more opportunities for jobs. Simultaneously, per capita income and GDP percentages can rise. Thus, poverty can be alleviated and economic Indicators can also increase to some extent.
The development of SMEs can be regarded as sign of cohesion, which can bring about all-round development of the modern state. We can see many countries which have set a good example for the world and can boast their growth through strong SMEs. Being a country rich in natural resources, a large number of job opportunities can be created, provided that high-value products can be produced by using modernised techniques. Nowadays, opportunities were created by cooperation in economic sectors among global countries. Myanmar has already established relations with global countries in trade, production and service industries, and it has more opportunities to enter the global production channel, which can create more opportunities for the development of SMEs.

 

Translated by Win Ko Ko Aung

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