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Financial impact strategy on smes in the business world

Author: 
Gligor Bishev and Tatjana Boshkov
Subject Area: 
Social Sciences and Humanities
Abstract: 

Globalization brings the threat of a weakened SME sector, since its role in exporting is less than proportional to its size; this reflects the economies of scale characterizing big markets. But globalization can also increase the importance of a strong SME sector, either where direct SME exports are feasible or where SME subcontractors help keep the country's large exporters competitive. The domestic industry by using knowledge, innovation development and upgrading the capacity of the small and medium enterprises can take the necessary changes for its output and increase export performance. All of this can contribute to sustainability of the economic growth and economic integration especially of small and open economies. Many transition and developing countries, in particular face a need to promote and strengthen the long term development of the SME sector, which requires access to market opportunities, as well as to new technology and management know-how, often in a situation of considerable resource scarcity. This paper aims to focus on contribution for developing financial strategies that could help to strengthen the SME sector in a way to record benefits from labor markets. Implementation of good strategies should increase the attractiveness of the labor markets in transition and developing countries for foreign investors which will improve the capacity of the SME sector.

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