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Small and Medium size Enterprises

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					?The problem of unemployment being real and diverse in every corner of this planet,
the thought of small and medium size enterprises has become embraced by many
countries.

As many graduates leaves the university gates with their warranted certificates
secured in their pockets, the employers are deemed to lock their own doors for
recruitment.

The economy of the third world countries especially is characterized by more job
seekers rather than job creators.
It is for this reason that you will find natives of such countries competing angrily for
the few available job opportunities.

This observation has been noted by the governance of such countries and as a result
they have supported the idea of setting up law enabling the citizens to start up small
and medium enterprises or organizations.

This action is aimed at helping the many intelligent brains looming about in the job
market with the hope of grabbing one of the few chances available by making them
able job creators who can absorb the upcoming job seeking generations.

Small and Medium Enterprise Basic Law

The Law aims to offer innovative courses for small and medium enterprises and put
forward goals of policies for those enterprises.

It specifies measures to sustain business invention and modernization by small and
medium enterprises in retort to changes in the economic environment.

Moreover it provides measures to reinforce operating bases that add to future business
innovation among small and medium enterprises which have been clearly hit by main
alterations in the economic environment.

The Law specify the rules of approval and others matters regarding research and
development programs of small and medium enterprises, industries unions and others
in order to enter into new business sectors.

It aims to help structuring activities conceded by industry associations and others in
accordance with industry by industry transformation plans in order to encourage
upgrading of small and medium enterprises.

The Law specifies the Small Business Corporation whose plan is to contribute to
training and guidance for promoting advancement of small business organization and
reshuffling of corporate management.
 Its other duties comprise contributing to operation of mutual relief projects under the
Small Enterprise Mutual Relief Projects Law and one on Mutual Relief System for the
Prevention of Bankruptcies of Small and Medium Enterprises.

Small and medium enterprises and the business credit

Many people who own business are small scale and in order for them to enjoy
economies of scale, they have to rely on loans or borrowing for instance.

 This in other words is business credit which enables them to grow to other levels of
production and profitability.
The Law sets small and medium enterprise credit insurance to smooth the progress of
operation money for small and medium enterprises, aiming at their development.

It does so by setting the system of the Credit Guarantee Associations to achieve easier
financing for small and medium enterprises.

The system's main duties are to make guarantee for such debts when those enterprises
are financed by other financial institutes.

What consolation do the small and medium enterprises have for disasters?

The Law provides the national government's particular fiscal aid for local
governments or special assistance measures for the damaged in case of extraordinary
substantial disasters

This is an original article written by Esteri Maina on SMALL AND MEDIUM, Esteri
Maina is an author with a great gift and full of inspiration.

				
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