Small and medium enterprises, a means to modernize cities

by **claud39** Sat Feb 23, 2019 7:25 am

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[size=36][rtl]Small and medium enterprises, a means to modernize cities[/rtl][/size]

Friday 22 February 2019

Small and medium enterprises, a means to modernize cities Alsabaah-6651

Baghdad / Emad Al-Amara

Dr. Ahmed Omar Al-Rawi, member of the Center for Arab and International Studies, said: "The medium and small enterprises globally play an important economic role by integrating them with the big ones. They feed the large industries by producing small pieces in automotive industries, for example, or electronic industries. To modernize cities and develop rural development.

Reality of small industries

"Many small and medium-sized industries have emerged in Iraq since the beginning of the last century, especially in major cities, benefiting from the availability of raw resources and local inputs in many industries," the narrator said in an interview with Sabah.

"Small industries in Iraq can be divided into three categories: handicrafts, representing most small-scale industries, relying on experiences such as carpet, knitting and traditional products, food industries such as dairy, jams, vegetables, grain milling, mechanical and chemical industries such as agricultural machinery, , In addition to the manufacture of inks and dyes.

"These industries have found their way to spread because of the availability of local resources and manpower, and despite this proliferation, production has remained limited and concentrated in traditional industries due to lack of support from state institutions and lack of funding and development," he said.

Value Added

"They play an active role in creating value added, as they contribute 55 percent of value added in Japan and about 39 percent in Chile," he said.

"Small and medium enterprises contribute to the employment of a large part of the labor force, employing 34 percent of the US workforce, 71 percent in Japan and 50 percent in the Philippines. Germany is 85 percent, 99 percent in Chile and 90 percent in the Philippines. "

Investor money

"There is no agreed definition on the establishment of small and medium enterprises, and the definition of this concept is related to the circumstances of each country." Two trends can be identified in this area. First, the number of workers employed by the establishment is different. 1 to 9 workers in small enterprises and 10 to 29 workers were approved for medium-sized projects. "

"The second trend represents the capital invested. The World Bank has set this capital at about $ 220,000 for small projects and in Egypt for about $ 100,000," he said, referring to the situation in Iraq. "The determination in 1982 of less than 100,000 dinars The most important elements of the success of small and medium enterprises are that they require large capital and in most of them do not require advanced technology. Some of them depend on the intensity of the labor component rather than the capital. They also have the flexibility of administrative work, which allows them to fit the needs of the market. "He said.

Infrastructure

"The obstacles faced by small and medium enterprises are the decline of the necessary infrastructure, especially in the developing countries, such as energy sources and transport, the lack of legislation and institutional frameworks to regulate the work of small and medium enterprises, "He said. He pointed out that "the lack of protection of its products, especially in light of the liberalization of international trade and subject to strong competition, and poor supervision and care by government institutions for small and medium industries, especially in developing countries."