Small and Medium Scale Enterprise, Local Economic Development

This article explores importance of SMEs in a given economy. It will also show us the reason why SMEs should be given full concentration and also to provide for the existing SMEs and encouraging more to start up. The contribution of the Small and Medium Enterprises (SMEs) to the Local Economic Development (LED) of a nation is well recognized. In developing countries, the contribution of SMEs towards employment generation is significant because they: • Nurture entrepreneurship. • Since small businesses employs the citizens of the country, it helps to reduce risks (reduce crime rates). • Support the building up of systemic productive capacities and the creation of resilient economic systems, through linkages between small and large enterprises. • Tend to use more labour intensive production processes than large enterprises, boosting employment and leading to more equitable income distribution • Provide livelihood opportunities through simple, value adding processing activities in agriculturally based economies;