SME is considered as Employment Generating Machine-Explain

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

 1.    SME sector is the largest provider of employment in most countries, especially of new jobs.

2.   SMEs tend to employ poor and low -income Workers.

3.   SMEs are sometimes the only source of employment in poor regions and rural areas.

4.   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.

5.     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.