Role of Small Business in Economic Development: A Quantitative Investigation

Abstract

Small businesses have always been seen as essential to economic growth. Small enterprises have been crucial in recent years in promoting economic growth and opening up job opportunities. Despite the difficulties, small businesses have persisted in displaying resilience and adaptability, helping the local and global economies recover. As these account for a sizable portion of job creation, innovation, and entrepreneurial activity, these play a significant role in the growth of the economy. Many individuals can find work, especially in rural and low-income areas, and these frequently act as a driver of regional economic development. However, small businesses encounter many obstacles in the efforts to support economic growth, such as restricted access to capital, regulatory limitations, and competition from bigger businesses. Therefore, by fostering an environment that is enabling the growth and development, policymakers and stakeholders must assist small businesses. This can be accomplished through facilitating access to capital, streamlining regulatory procedures, and encouraging entrepreneurship-related education and training.