Role of SMEs in Asian Economies
3 Pages Posted: 3 Jan 2017
Date Written: December 23, 2016
The Small and Medium Enterprises (SMEs) are considered as engine of growth throughout the world. About 97 per cent to 99 per cent of the enterprises of Asian developing countries are SMEs. This scale could be slightly different for different Asian countries. In the lowest side about 97.3 per cent of enterprises in China are SMEs, 97.3 per cent of enterprises in Malaysia are SMEs, 97.5 per cent of enterprises Kazakhstan are SMEs, 97.7 per cent of enterprises in Vietnam are SMEs, but in this highest side 99 per cent of Bangladeshi enterprises are SMEs, 99.4 per cent of enterprises in Singapore are SMEs, 99.5 per cent of Sri-Lankan enterprises are SMEs, 99.6 per cent of enterprises in Philippine are SMEs, 99.7 per cent of enterprises in Thailand are SMEs, 99.7 per cent of enterprises in Japan are SMEs and finally 99.9 per cent of enterprises in Republic of Korea are SME. SMEs are playing vital role in employment generation of respective countries for example SMEs are generating 87.7 per cent of enterprises employment of South Korea (Republic of Korea), 80.3 per cent of enterprises employment is generating by SMEs in Thailand, 75 per cent of non-agricultural employment of Bangladesh are generating by SMEs, 71.8 per cent of enterprises employment is generating by the SMEs in Cambodia etc. Similarly SMEs are contributing in promoting GDP Growth and increasing Export Earnings of respective countries. For example SMEs are generating 60 per cent of Indonesian and Chinese GDP; similarly they are contributing 47.6 per cent of the GDP of the Republic of Korea, 45 per cent of the GDP of Singapore, and 43.7 per cent of the GDP of Japan. In Bangladesh SMEs are contributing 25 per cent of GDP. In terms of Export Earnings, about 42.4 per cent of Indian export earnings come from SMEs, similarly 41.5 per cent of Chinese exports come from SMEs, 26.3 per cent of export earnings of Thailand come from SMEs, 20 per cent of export earnings of Sri Lanka come from SMEs, the amount is 18.8 per cent and 15.7 per cent for Republic of Korea and Indonesia respectively.
Keywords: SMEs in Asia, Asian SMEs, Contribution of SMEs
JEL Classification: P42
Suggested Citation: Suggested Citation