According to the World, Bank, Small micro and Medium enterprises account for over 90 percent of global businesses, thus proving to be the greatest contributor to the job market.
They represent more than 50% of employment worldwide. Formal SMEs contribute up to 40% of national income (GDP) in emerging economies.
According to Carrol Rutto, Director Retail Banking, National Bank of Kenya, SME sector in Kenya has employed over 14 million people but due to emergence of coronavirus pandemic, majority of small businesses shut on account of unsustainable balance sheets.
These numbers are significantly higher when informal SMEs are included. According to our estimates, 600 million jobs will be needed by 2030 to absorb the growing global workforce, which makes SME development a high priority for many governments around the world.
In emerging markets, most formal jobs are generated by SMEs, which create 7 out of 10 jobs. However, access to finance is a key constraint to SME growth, it is the second most cited obstacle facing SMEs to grow their businesses in emerging markets and developing countries.
In small and medium-sized enterprises (SMEs) employ fewer than 250 people. SMEs are further subdivided into micro enterprises (fewer than 10 employees), small enterprises (10 to 49 employees), medium-sized enterprises (50 to 249 employees)
