Support for Small and Medium-Sized Enterprises - Case Study Example

In the same manner, as varied definitions have been given to small and medium enterprises throughout the entire globe, the researcher has also discovered the different ways by which governments support them. According to Sissenich (2007), the extent of the support given to SMEs in different countries has been a very popular area for research as this has been considered to be of paramount importance to the success of the SMEs which could, in turn, bring about positive benefits for the economic growth and development of these countries. For instance, the Chinese Central Bank has adopted several measures by which they could help in lessening the difficulties being experienced by the Small and Medium Enterprises in the country. In general, the said support is firmly anchored on four specific policies that are friendly and of paramount importance to Small and Medium Enterprises. Apparently, such aid is focused on the development of initiatives that are used by financial institutions in order to encourage Small and Medium Enterprises to continue doing their businesses (People’s Daily Online, 2009; Smith and Whitaker, 1998).

Mpofu (n.d.) on the other hand, shows that governments in Africa do not provide any support for the Small and Medium Enterprises for the country thereby contributing to the failure of such in their country. According to the said author, the absence of the said support has been relatively detrimental to the country’s economic growth and development.

The report entitled Saudis give priority for developing SME sector (2005) showed that the Kingdom of Saudi Arabia has been giving paramount importance to the SME sector since 2005. According to the said report, the country has placed top priority on the said development as a result of their accession to the World Trade Organization. For the authorities in the country, much effort must be given to the reinvigoration and strengthening of the base of the Small and Medium Enterprises as they are the backbone of their economy thus illustrating their importance for the economic growth and development of the kingdom (Saudis give priority for developing SME Sector, 2005).

However, there are some aspects of efforts and decisions that have been made by the government and private sectors in Saudi Arabia to encourage citizens to establish small to medium-sized businesses. One of these significant decisions and extension of support for SMEs in the mentioned state has recently been announced by Human Resources Development Fund (2009) that the (HRDF) decided to provide the applicants, who have already passed the phases of establishing small or medium business and have already received the loan, SR three thousand per month during the first tow years, in order to supply the essential requirements during establishment stage away from the prejudice to the capital.