This essay talks about the actions of the Government of UK, taken in order to revitalize activities of the small and medium scale enterprises (SMEs) in the country. SMEs act as one of the pivotal points in United Kingdom around which the growth and prosperity of the entire nation revolves…
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This essay offers a comprehensive review of the current economic policy of the UK government towards small and medium-sized enterprises. The efficiency of such policy is also analysed. The smaller firms are less fortunate to obtain significant financial aid to combat their insolvency problems. The successive governments in UK have been witnessing comprehensive policy initiatives for uplifting the small enterprises.
The very existence of SMEs is vital for the overall economic growth of the developing nation of UK. For preserving the economic opulence of the country, the existing small enterprises must be rescued from all hindrances of sustainability.
The threat to these business units resulting into critical problems such as severe unemployment and decline in the economic growth has made the Government to identify the urgency to rescue such SMEs from collapsing.
Various action plans and schemes have been taken up by the government for protecting these enterprises. However, the government itself, along with others, admits that a lot of work is yet to be done for achieving the success of reviving small enterprises. There lies a wide gap between preparation of plans and measures, and putting them into appropriate actions thereby ensuring viable results. Impeccable efforts are still missing in order to bridge up this gap.
In spite of the endeavours for complete eradication of the barriers faced by the struggling small business firms, a viable implementation of actions for the revitalisation of the SMEs is still lagging far behind.
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(Economics of Small and Medium Enterprises Essay)
“Economics of Small and Medium Enterprises Essay”, n.d. https://studentshare.org/macro-microeconomics/1536916-economics-of-small-and-medium-enterprises.
This research paper addresses the importance of small business in the international contexts, mainly in relation to their roles in job creation, innovation and long term growth. This paper chooses UK as an example for how efficiently that small businesses play its roles and affect the economy of the country.
Globalization and its technological development aspects have been fundamental factors to trade, especially to the global trade where involved parties may be from different geographical regions. Communication for product description and establishment of terms of trade towards a transaction’s contract establishment is easier, faster, and cheaper.
But times have changed with the globalisation regime multinational enterprises have made a distinctive mark on the local markets as well. While on the one hand this affected the economic factors of the region or country, on the other the SMEs started realising the need for pressing changes in the management of different aspects of the enterprise.
Governments in many countries are providing benefits so that economy can flourish with the SME culture, governments are focusing on trade and investment liberalization so that even foreign direct investment can add to the nation's revenue; other government steps include privatizing the public institutions and providing tax relief to the small businesses.
However, globalization also raises the risk of marginalization of countries, in particular the poorest countries, and the most vulnerable groups everywhere"2
"Several CEI countries, which are moving towards a free market economy, fear, that the globalization process of the world economy and markets might affect an economic texture that is still unprepared from a technical, financial, organizational and social point of view.
The author explains that small and medium enterprises have been playing a pivotal role in the economic development and uplift all around the world. Their part in creating new employment opportunities has been pivotal and decisive both in the first and third world countries. There are different success criterions for an SME.