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ID AMOUNT: 11060659 TRAINING COURSE: MANAGEMENT OF SMALL AND MEDIUM SCALE CORPORATIONS (SMEs) LECTURER: MR. ADAMS FADIR-RAHMAN PARTICULAR DATE: 21-4-2010 PROBLEM: TO WHAT DEGREE DO COULD IT BE SAID THAT BEKWAI, GHANA CANNOT DEVELOP WITHOUT THE ACTIVITIES OF SMEs OPERATORS Small , medium businesses (SMEs) happen to be companies in whose headcount or turnover falls below particular limits. And the limit depends upon what country when the company is definitely operating.
SMEs contribute immensely to the monetary development of a rustic.
And it can end up being said that a developing country like Bekwai, ghana cannot develop without the contribution of SMEs due to the subsequent reasons: Firstly, SMEs lead significantly for the provision of productive job opportunities for non-urban and downtown growing labor force in Bekwai, ghana. The supply of job opportunities increases the technology of cash flow by the people. And when a lot of people in the country are engaged, it contributes to the lowering of lower income.
Secondly, they help to absorb productive resources at all amount economy and add to the adaptable economic system in which small and large firms are interlinked. Such linkages are very vital for the attraction of foreign investment. This is because the investing transnational corporations look for sound home suppliers for his or her supply string. Thirdly, SMEs provide replacement for imported goods which usually create competition and contributes to production of quality products at affordable prices.
This is to say the fact that substitutes of imported items produced in Bekwai, ghana by SMEs helps to generate competition between your SMEs plus the foreign producers. And this makes them to develop quality goods at affordable prices seeing that there is competition. Furthermore, SMEs help in the provision of capital to many of these, other businesses and even the federal government. When the SMEs generate their very own income, that they deposited all of them in the several commercial banking companies in Bekwai, ghana. It is by these funds that the banking companies advance loans to their needy customers.
And these funds are sometimes borrowed to the government to financing its developmental projects. Also, the profits generated by the SMEs is usually subject to tax. Thus all their returns will be taxed pertaining to the development of the country. These fees, when gathered, are used for the development of streets, schools, hostipal wards and other sociable amenities. Also, SMES assist to produce and enhance the movement of goods beyond the country. Additionally they help to the nation to export its raw materials or normal resources to foreign countries for forex trading.
And it also paves the way for a few local items to be marketed outside the region. And this speed up the low domestic merchandise (GDP) and per capital income in the country. Finally, Most of the current larger businesses have their origin in small and medium enterprises. This is to say that most with the large scale enterprises in Bekwai, ghana were SMEs before their current state. SMEs differ from large scale corporations in 3 main aspects, uncertainty, creativity and development. Therefore we could say that SMEs are the kick off point of development in the Ghanaian economy toward industrialization.
The bottom line is, judging previously mentioned, we can see there is no way that Ghana can develop without the procedures of SMEs. So what is necessary is for the government of Bekwai, ghana to follow the precise coverage and regulating reforms to show SMEs in an effective instrument for the enhancement of economic development. REFERENCE: SMALL AND MEDIUM SCALE ENTREPRISES, JONATHAN BLAY, 1993, CANADA SIGNIFICANCE OF SMALL AND METHOD SCALE ENTREPRISES IN MONETARY DEVELOPMENT, BASHIR AHMED FIDA, PAKISTAN, 2008. WWW. THEFREELIBRARY. COM