How Small Businesses Can Spur Economic Growth and Job Creation

How Small Businesses Can Spur Economic Growth and Job Creation

Ending extreme poverty takes more than just ensuring there are factories to absorb the population looking for employment. A better solution that has been devised and shared by economics experts like Andrew Charlton is supporting the development of small businesses and the creation of employment in the informal sector.

With the advent of automation, more jobs have become irrelevant and today machines perform most of the tasks humans used to do 10 or 20 years ago. This has happened despite the fact the population has been steadily rising across most parts of the world, and the resultant effect is the mushrooming of poverty, something the World Bank and other institutions are fighting hard to bring to an end. According to economics experts, providing a conducive environment for small businesses could deliver part of the solution to the unemployment crisis.

Role of small enterprises in economic development

Apart from acting as drivers of growth locally, small and medium size enterprises also have a significant role to play in dealing with development challenges, particularly ones that are related to ensuring sustainability and the delivery of services. Entrepreneurs who steer these enterprises come up with new service delivery methods, which can in turn help to develop a society by giving tools that can be used to create more wealth while also guaranteeing the provision of jobs.

This could explain the reason the World Bank has been focusing on building small enterprises in the areas of technology, agribusiness and ICT. These are critical areas of our economies that account to most of the revenues governments collect, and the best way to ensure more people are able to access services that can empower them economically is by first supporting these small enterprises that have ideas that could help an entire community.

Growing momentum

Statistics show that most of the small businesses in the areas of agribusiness that received support managed to come out as high-impact companies that have supported the economies of many families locally. This success that has been witnessed among SMEs led to the launch of the World SME Forum in 2015, whose focus is enhancing easy access to funding for small and medium size businesses. SMEs are the pivot of local economies and ignoring their position in the wider economy is imparting severe punishment to the locals who ought to reap benefits from these forms of businesses.

Entrepreneurs who have business ideas that have the potential to transform communities deserve the needed financial and technical support. Educating these entrepreneurs to allow them to implement their projects with the future in mind will help create a sustainable local economy that will in turn help alleviate poverty by absorbing most of those looking for employment.

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