Performance and Growth of Small and Medium-Sized Enterprises in London - Dissertation Example

Download file to see previous pages The main purpose of this study is to determine how SMEs, which are considered the smallest sections of economics and have a share rate of about 95% (percent) of both developing and developed countries’ economic compositions, have been both negatively and positively been influenced by the effects of the financial downturn in London. Small and medium-sized enterprises (SMEs) have been recognized as catalysts to spur the economic advancement of London. In this regard, therefore, special focus has been given to the well-being of these SMEs in recognition of the fundamental roles they play in the economic advancement of London’s economy. Several research findings indicate that the small business sector has greater importance for the national economy, employment, and the innovative environment of a country-London. Despite the encouragement and support given to the SMEs, their success and failures compared to give a more picture of frequent failures due to internal and external environmental factors.

The global economy is experiencing its greatest financial and economic downturn ever, which has spread from housing and credit sectors in the U.S to other markets and countries around the world because of the increased integration of goods, services, and financial markets. Just a few, if any, economies have been left untouched by the crisis. The evidenced disintegration of American mortgage lenders and Wall Street investment has faced severe and unplanned effects for the commercial banks and non-financial companies around the world. Although there were several impacts felt, the financial crisis was never uniform across the globe. World’s economic crisis’ cost of 2007-08 negatively affected the economies on the macroeconomic and microeconomic basis of the major parts of the entire world. Considering the microeconomic, the crises especially affected the Small and Medium-sized enterprises which are the keystone of the real economy. An increase in loans, poverty, uncertainty, input cost, and recessions in the economy are some of the negative effects of the crises experienced. ...Download file to see next pages Read More