The Importance of Small and Medium - sized Business for the Country’s Economy

Abstract

The article talks about small and medium-sized business and its importance in the development of the economy. Small and medium-sized enterprises play an important role in the economies of most countries, especially developing countries. Small and medium-sized companies are a major part of world businesses and make a huge contribution to job creation and the development of the global economy. They account for about 90% of world production, 60% -70% of jobs and 55% of GDP. In developing economies, small and medium-sized businesses provide almost 40% of national income. They are a necessary and integral part of the economic system of any developed country, the improper development of which hinders the normal existence and development of the economy and society. Development of the country in the XXI century is unimaginable without commerce, manufacturing, financial institutions and modern infrastructures. Small and medium business is a field that creates products, provides services to customers, is the creator and implementer of innovations and the latest technologies in any field, creates jobs and the middle-income layer of the society, fills the budget, attracts foreign capital and investments, which in itself strengthens the exchange rate, promotes healthy competition, the existence of free markets, naturally opposes the establishment of monopolies, creates a stable socio-economic environment in the country, raises the image of the country at the international level. It is for these numerous reasons that small and medium-sized businesses not only make a significant contribution to the economy, but also emerge as an economy. The world experience of many countries in the market economy system shows that small and medium-sized businesses can play one of the most important roles in solving the national problems in the countries. By 2030, 600 million jobs will be needed worldwide to meet the growing demand for employment, prompting governments to promote small and medium-sized businesses. Keywords: business; Small and medium business; Small and medium enterprises; Employment; Importance in economic development.