The value and importance of the small firm to the world economy

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This research will begin with the statement that in the recent times, the role of small firms has been recognized to be extremely important for socio-economic development. Gërgjaliu-Thaçi stated that small firms in the current world economy are closely associated with employment and poverty eradication. It is claimed that small firms decentralize economic control and offer individuals a stake in the future. However, there has been constant debate being made-over the importance of small firms. Amid these constant debates, the proponents of small firms have stated that successful small firms are crucial for the global economic development. It has been claimed that small firms are the major source of innovation and development of entrepreneurship. In this section critical analysis of the article, first, the researcher wants to demonstrate the statistics presented in the article. Correspondingly, Day argued that most firms across the world are small firms based on the number of employees employed. Taking the example of the United Kingdom’s (UK’s) business environment, the author has stated that 95 percent of firms in the UK employ less than 10 employees which imply that small firms are the predominant aspect of the socio-economic growth of the UK. Cromie firmly asserted that marketing in small firms is equally important as in the case of large firms. It is crucial that activities pertaining to marketing in small firms are relevant as well as appropriate considering the problems that it intends to resolve and the life cycle position of the firms.

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