The Role of Small and Medium Scale Enterprises in the Development of Economic Activities in Malaysia
Subject Areas : Technology Development Infrastructures and Supporting organizations
Saeed
KiyanPour
1
Roya
Tolaei
2
Keywords: Small and Medium-Sized Enterprises, Economic Development, Economic Activity, Intellectual Capital, Knowledge-Based Economy,
Abstract :
In The world's most developed countries, policies to support small and medium enterprises in order to increase growth, income generating employment and reducing poverty in the forefront of economic or social - are governments’ important priorities. Essential characteristics of small and medium enterprises, including flexibility in face with market changes, rapid attainment of the activities, initiatives and high motivation of staffs and limited initial capital requirements, have caused growth, innovation and economic dynamism in transition economies of the firms. This study aimed to identify small and medium sized manufacturing firms with rapid growth, and determine their contribution to the Malaysian economy. Malaysia's Vision 2020 has planned development policies through enterprise and small business enhancement. These companies play a significant role in the economic breakthrough of Malaysia. These companies have allocated 93.8% of the operating companies in the industrial sector, 27.3% of total manufacturing production, 25.8% of value-added in production, 27.6% of the fixed assets and 38.9% of the employees of the country. Evidences suggest that these companies have major contribution in national economic development in Malaysia.