Entrepreneurship is always desirable in poor communities ,even if entrepreneurs need continuing public support and consultancy ,and most small and medium size enterprises (SMEs) never grows big and pay lower wages than large plants .A growing body of literature now suggests that affluent communities rely on supply side policies to grow and develop. In other words, entrepreneur ship seems to play an important role in economic growth and development these communities have high quality human capital, adequate financial capital and social capital.
Hallberg (2000) agrees that SME competitiveness and growth is most importantly a function of the overall business environment, and argues that a good business environment is a necessary condition for the success of targeted assistance programs .The primary role of the government is to “provide an enabling business environment that opens access to markets and reduces policy-induced biases against small firms”.
Development Strategy
SME development strategy is in fact a private sector development strategy. The rationale for intervention SME sector is to address market and institutional failures that bias the size distribution of firms, not to the existence of inherent economic benefits provided by small firms. By promoting products innovation and delivery mechanisms and building institutional capacity, government can hasten the development of markets that SMEs can access for services. Porter sees the role of community based organization (CBOs) in working to change the workforce and community economically; one should not rely on local human resources if these are inferior to the “incomes”. CBOs counter that enabling individuals to grow through property ownership, skill development, and continued education, and encouraging them to participate in decision to physically and socially repair the community, increase the assets of both individual and neighborhood.
As communities become more economically viable, they are better places to live, and communities that are better to places to live become more economically viable. The extra growth over the past several years throughout the industrialized countries has been due to the growth of SMEs. In India, the Ministry of Micro, Small and Medium Enterprises (MSME) is implementing the promotional schemes for the development of micro, small and medium enterprises. The schemes and programmes generally focus on capacity building in states and regions, nevertheless, there are a few schemes and programmes, which are individual beneficiary-oriented.
Development of small businesses was started in the Republic of Belarus about 12 years ago. During this period, the state policy in the field of small businesses has been formed as well as respective regulatory and legal frames regulating activities of small and medium businesses (SMB). Significant changes have taken place in the quantitative and qualitative compositions of entrepreneurial structures.
At the current stage of the economic development in the country, entrepreneurship helps fill the market with goods and services, creates prerequisites for the development of the competitive environment, and is a source of budgetary funds, employment and self-employment of population, thereby helping decrease social tension and giving opportunity to people to apply their own physical and intellectual capacities. To develop advantageous conditions for sustainable development of small entrepreneurship units based on the improvement of forms and methods of State support provided to this sector of the national economy, since 1997 annual programmes of State support of small entrepreneurship and respective regional programmes funded from the national and regional budgets have been adopted and implemented in the country.