Small and medium sized enterprises (SMEs) in emerging markets Essay

Small and medium sized enterprises (SMEs) in emerging markets - Essay Example In addition to the challenges and support systems for SMEs in emerging markets, technology is another focus of attention and how it can be used to enhance the growth of SMEs in emerging markets. This is because the global market today is mainly influenced by constant changes in technology. Further, the development SMEs within developing markets also require R&D as a way of enhancing innovation to ensure that products from emerging markets compete at the same level with products from industrialized nations. This paper also discusses how the information from the literature can be used in future to improve the prospect of entrepreneurs and that of SMEs within emerging markets. SMEs today contribute towards new investments across the globe and thus, the need for various stakeholders to shift their focus in this emerging sector. SMEs normally lack the resources at the disposal of large firms to invest in difficult markets. However, numerous opportunities exist for SMEs in terms of investing in developing markets. For example, South Sudan, a new entrant in the global market presents abundant opportunities for SMEs. In industrialized nations, SMEs have a significant impact on the economy; however, this is not the same in the emerging and underdeveloped countries. This is because SMEs are faced with a number of constraints that include poor infrastructure, collateral requirements that are sometimes considered unrealistic and high administrative costs. In addition, financial constraint is seen as a major hindrance for the development of SMEs in emerging economies1. On another note, where the SME sector is weak, this also impact negatively on job opportunities, innovation and a country’s GDP. In this sense, establishing support structures for SMEs result in various benefits for the emerging markets. This is because supporting SMEs growth