DEVELOPMENT AND CONSOLIDATION OF SMALL AND MEDIUM ENTERPRISES IN RURAL AREAS

Abstract

Any world economy places special emphasis on small and medium enterprises that is why the enterprises of this sector are called the “backbone” of the economy. Therefore, we can state that SMEs play a very important role in the development of the national economy, especially of the rural economy: SMEs contribute directly to the Gross Domestic Product formation and to the creation of new jobs; they stimulate competition, increase exports, and promote innovation and technology. They are also more flexible, more adaptable to new market demands than large enterprises; this fact shows the importance and necessity of these enterprises. The main aim of this paper is to identify the SME’s role for the rural economy, as well as to identify the priority directions for increasing the efficiency of these enterprises’ activities.

Keywords

• small and medium enterprises
• rural environment
• rural economy
• business
• entrepreneurial skills