USV Annals of Economics and Public Administration (Dec 2019)
GLOBALIZATION AND ITS EFFECT ON THE DEVELOPMENT OF SMEs
Abstract
This paper highlights the role played by small and medium-sized enterprises in the development of the global economy. In essence, it is presented in the form of three chapters entitled suggestively. During the paper, I tried to touch on the main themes to demonstrate that these companies play an essential role in the economy. It is well known that SMEs are vital for economic health, both for high-income and lower-income countries worldwide. In terms of numbers, small and medium-sized businesses dominate the global business scene, although accurate and up-to-date data are difficult to obtain, estimates suggest that more than 95% of businesses worldwide are SMEs, accounting for about 60% of SMEs. employment in the private sector. SMEs are very important in creating jobs and contributing to GDP, but they are also an important source in the innovative system. In order to face the competition, the economic agents use many means, such as: reducing the expenses, improving the quality, renewing the offer, granting advantages to the buyer, etc. Other means would be the creation of tacit alliances between companies, partial mergers or the request to the state bodies to impose restrictions for foreign competitors.
