Operations management, Enterprenuaship and SMEs Assignment

Operations management, Enterprenuaship and SMEs - Assignment Example Identifying the strong points that a country can lift up its economy status is vital and extremely challenging to a government in terms of how it may choose to invest. Globally, it has been proven that apart from the multinational companies that are being brought up, the small and medium enterprises (SMEs) are also effective in terms of lifting a up a country economy wise. For a country to grow in a fast track investments multinational companies should be effected but also to the SMEs that have proven effective globally. Global Entrepreneurship Entrepreneurship has proved to be current global trend in terms of the attempts to uplift economy status by most countries in the world. Clearly, entrepreneurship drives innovation and growth. For a country to have a healthy economy, the level of entrepreneurship should be high (Mwenda, 2002, 68). To boost the level of entrepreneurship is significant in both developed and the developing countries in the world, the growth of the micro-finance i ndustry is a clear example of a service whose principles were formed in the light of development ideas. Micro finance industry as an idea came about in the understanding that small-scale entrepreneurs wer kept from development due to the lack of capital. For entrepreneurship to occur there should be a better mode through which citizens of a certain country can get capital. Though entrepreneurship should be a venture of investment in any country, in developing countries, entrepreneurship is not out of choice but as simple as lack of job opportunities amongst the citizens of these countries. This can be seen in the sub-Saharan African countries such as Zambia and Rwanda. In these countries, 70% of the entrepreneurs have started small-scale businesses because they lack jobs (Freese, 2000, 25). It is estimated that SMEs contribute about 25-35% of worlds manufactured direct exports (OECD, 1997, 3). Small and Medium Enterprises (SMEs) Globally In most countries of the world, small-scale b usinesses are the driving power of the economy; this is evident mostly in the developing counties where the small-scale enterprises are established due to lack of job opportunities. In developed countries, the impact of SMEs can also be felt when it comes to how the business is conducted globally (ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT, 2011, 20). The economy of the United States of America suffered a great recession and ways were devised that enabled the country get back on its foot. The strategies that were put in place by various authorities were majorly entrepreneurial, by this; the United States government ensured that the country utilized all its power and connections in terms as far as entrepreneurship goes. The United States government encouraged private investment in the Malaysia as one of the strategies to boost its economy. Malaysia has a strong economy having the third largest economy in South East Asia behind Thailand and Indonesia. Malaysia global posit ion stands at 29 with estimated gross domestic product of $492.4 billion per capita in 2009. This move by the United States proved effective as the GDP of the united state grew by 1.8% in the year 2010 (international business publications USA, 2012). Small and medium sized enterprise also form the backbone of Europe’