The small and medium sized business fields are represented by companies whose number of employees fall below certain limits. They exceed the large businesses, so, they employ many more people than any other company.The Small and Medium Sized Business Picture
The small and the medium sized business activities promote innovation and competition in the economic sectors. They represent 99% of all businesses, which can only mean they are the key for economic growth. The employment and social integration are also sustained in a great way. The European Commission’s goal is to develop successful entrepreneurship for SMEs. This way they will reach their full potential and they will have a big impact on the global economy.
The SMEs (small and medium-sized enterprises) are defined by certain aspects:
These companies have an annual turnover that doesn’t exceed 50 million euro. They are essential for the market economy and especially for the economic development in the Gulf Cooperation Council.
The Golf Cooperation Council (GCC) is a political and economic union of the Arab states near the Persian Gulf and the United Arab Emirates.
There are some economical aspects encountered among the GCC’s objectives:
However, the UAE announced their withdrawal from the monetary union project when they found out that the central bank of the monetary union would be located in Riyadh instead of UAE.
If it would be realised, the GCC monetary union would be one of the largest supranational union in the world. The small and medium sized business would have a lot to gain because the common market would assure equal treatment to all the firms and companies in every GCC country.
However, banks in the GCC area are cautious when it comes to lending money to SMEs due to the applicants’ failure to meet loan conditions. That means that 55% of SMEs do not have available credit to improve their business.
So, an effective risk management could help the entrepreneurs to succeed in their businesses That could be possible by using strong insurances in order to protect them from risks. These practices will impress bankers and the result could be a wider access to capital.