SMEs vital for sustainable development in Arab World -- study

KUWAIT, July 17 (KUNA) -- A new study said that small and medium enterprises (SMEs) are vital to achieve sustainable development in Arab countries, reduce unemployment and create balanced income.
SMEs provide variety in goods, services and job opportunities, the study, conducted by the Arab Planning Institute in Kuwait said on Tuesday.
These projects boost production, allowing big companies to have lower cost and shorter time periods in production, it noted.
SMEs are also perfect for investing in local resources, since they dont require big capitals. They also create balance between offer and demand in local markets with lower prices.
Meanwhile, the study said that SMEs tend to protect the environment as they usually recycle and use waste left by big factories and protect non-renewable resources.
These projects also adopt modern industry concepts such as time management, high quality, creativity and innovation, it added.
The study noted that governments must provide facilitation for SMEs since they can boost the countries' economies. These include supporting infrastructure for the projects, provide technical and economic consultation and facilitate loans and legal measures.
The Arab Planning Institute is a non-profit organization established in 1972 to support development in the Arab World. (end) km.ht.tb.ag