Small wonder

Small and medium enterprises SME are finally getting their due. the world over there is an increasing emphasis on linkages between SMEs as a measure of strengthening them. SMEs play a crucial role in exports, foreign investment, employment and other aspects of the economy.

Exports is one area where SMEs do better than the large companies. In China, SMEs account for 40-60 per cent of the exports while the figure is 56 per cent for Taiwan. Economic giant South Korea8217;s exports are also powered by the SMEs. SMEs are more important in developing countries than in the developed world. They often work as sub-contractors for larger manufacturers and feed the demand for good quality products. Foreign investors also link up with SMEs for contract manufacturing.