Small and Medium Enterprises (SMEs) play a major role in most economies, particularly in developing countries. Formal SMEs contribute up to 45 percent of total employment and up to 33 percent of national income (GDP) in emerging economies. These numbers are significantly higher when informal SMEs are included. According to estimates, 600 million jobs will be needed in the next 15 years to absorb the growing global workforce, mainly in Asia and Sub-Saharan Africa. In emerging markets, most formal jobs are with SMEs, which also create 4out of 5 new positions. However, access to finance is a key constraint to SME growth; Without it, many SMEs languish and stagnate.
During the recent past years, with the increasing risks of doing business in the Middle Eastern markets, The Medium and Small businesses and companies proved their ability to withstand much more than Large sized and Brand companies which differ in their participation rate in the national economy of the country they are located in....
In the large-sized companies that do not have fixed assets, it became so difficult to keep large numbers of employees, where these companies started suffering from huge expenses and costs associated with huge rents and asset's maintenance figures, in addition to being affected with political decisions more than ever before, due to their different nationalities....
This is because of several points :
4. The political changes in the region which lead to governments' interference in commercial companies' work, their sales policies, and the quality of goods shall be used. So the solution was to reduce the large number of employees and workers laying them off arbitrarily and immediately, in addition to moving the company to lower cost place; or even move or relocate in another country which holds in terms of labor cost competitive advantages; and in some cases, shutting down the company which is much better than continuing in such circumstances.
In all difficult working conditions , small and medium-sized companies have kept their employees, they even increased employment rate up to 22 % over the past two years depending on the essential principles of their work, which large companies went to and have reduced their activities, namely:
As for the difficulties that face the small and medium enterprises are often lie in: