In Saudi Arabia, small and medium enterprises (SMEs) contribute 33 per cent to the country’s gross domestic product (GDP) and employ 25 per cent of its local workforce according to a Capita Group International (CGI) 2011 report. In the UAE, SMEs contribute 30 per cent to the country’s GDP and employ 86 per cent of its total workforce. The CGI report indicates that SMEs contribute 35 per cent to 45 per cent to the global GDP and an estimated 40-60 per cent to global employment. SMEs employ 52 per cent of the US private sector workforce and they contributes 64 per cent and 44 per cent to the GDP of Spain and Austria, respectively. This shows that small firms in GCC are relatively inefficient. Their share of employment is far greater than their share of GDP. According to the National Commercial Bank (NCB) report, most of the businesses in the GCC, especially SMEs, are saddled with low efficiency, low growth, little innovation and weak management.
No comments:
Post a Comment