SMEs as Social Actors and Agents in Developing Economies

Abstract

SMEs account for more than 74% of the firms outside the government and provide more than 3/4 of a country's employment ratio especially in developing economies. They also generate significant domestic and export earnings. Based on these, SMEs can be considered as key instruments in poverty alleviation and job creation. Unfortunately, globalization and trade liberations in different forms and shapes have ushered in new opportunities as well as challenges which have become cumbersome for most SMEs to overcome. This paper discusses the extent to which SMEs have become social agents and actors in shaping the economies of developing countries. Findings reveal that the inability of most SMEs to surmount the challenges posed by globalization serves as a stumbling block to the joblessness and social mischiefs in various developing economies.