THE ROLE OF SMALL BUSINESS IN ECONOMIC DEVELOPMENT OF EUROPEAN ECONOMY

Abstract

Small businesses provide catalytic benefits to the economy. They contribute to national output, and to the society as a whole, beyond the spending and profit they generate. The role of SMEs is crucial for the European economic recovery – their number, employment capacity and value added constitute a large share of the European economy. Providing the right conditions in which SMEs can flourish is paramount for ensuring a sustained recovery and achieving prosperity for all EU citizens. There is no single agreed definition of an SME. Early definitions of ‘small’ businesses were largely qualitative. SMEs are generally considered to be non - subsidiary, independent firms which employ fewer than a given number of employees. For many small businesses, going global is no longer just an interesting to do – it is essential to the long – term health and performance of the company. Across the EU policies are being developed at regional, national and transnational government level that see SMEs as the only positive way of creating employment and generating increased local growth for the community.

Keywords

• small and medium enterprises
• innovation
• entrepreneurship
• economic development
• globalization