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Importance of Small and Medium Enterprises (SMEs) |
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Small and Medium Enterprises (SMEs) play a significant role in the development
of the country's economy. The Malaysian government has placed great importance
on this sector and has allocated significant funds for its growth. SMEs are a
vital component in the country's drive towards modernization and progress and
the government's concept of "People First, Performance Now" is reflected in its
efforts to empower this sector.
SMEs can improve the local economy by providing job opportunities for people in
rural areas. These businesses are usually established in rural areas as part of
the "One Village, One Product" program. For instance, a local chip factory, a
tomato sauce factory, a handmade craft factory, and many more, can provide jobs
to the local residents. Additionally, these businesses can sell their products
to villagers and other visitors, making them an important source of income.
The drive and perseverance of SME owners often leads to their products being
noticed by consumers, even though their profit margins may not be as high as
those of larger companies. This highlights the importance of SMEs in improving
the economic status of rural residents and, in turn, contributes to the overall
growth of the country's economy.
Moreover, SMEs also provide job opportunities for the local residents. For
instance, a local chip factory requires workers to prepare ingredients, cook,
package and market their products. The factory would typically require between
15 to 20 workers to operate effectively. To minimize costs and increase
productivity, SME owners usually choose to hire local workers, which creates job
opportunities for housewives, single mothers, or unemployed individuals in the
area.
SMEs also play a significant role in preserving traditional cultures and crafts.
For example, a batik factory provides a platform for the promotion of this
traditional craft. Additionally, SMEs also help to preserve other cultural
heritages like handicrafts and local cuisine. This not only helps to maintain
the cultural heritage of the country but also provides a source of income for
the local communities involved.
In conclusion, SMEs are an essential part of the country's economy and play a
crucial role in promoting local development and job creation. They also serve as
a platform for preserving traditional cultural heritage and crafts. The
government's support for the growth of this sector is commendable and should be
continued. |
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