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. SME is considered as employment Generating Machine- Explain?


SME is considered as employment Generating Machine for the following reason:

·         SME sector is the largest provider of employment in most countries, especially of new jobs.
·         SMEs tend to employ poor and low -income Workers.
·         SMEs are sometimes the only source of employment in poor regions and rural areas.
·         There are approximately six million SMEs in Bangladesh, which include enterprises with up to 100 workers employing a total of 31 million people – equivalent to 40 per cent of the population of Bangladesh aged 15 years and above.
·         SME has huge Employment generation potential due to labor intensive nature of most of the SME activities. Between 1986 and 2006, the labor force grew by nearly 3 percent while employment grew by 2.6 percent. In the small enterprises, employment grew by 4.8 percent during 1978-1991 and by 5.5 percent during 1991-2001. Employment growth in the medium enterprises is estimated at 9.6 percent during 1988-2003. SEDF reports that between 80 percent and 85 percent of the total industrial employment and 23 percent of the country’s overall employment is accounted for by the SMEs.