Essay --

Introduction A small and medium enterprise refers to registered business with less than 250 employees (International Finance Corporation, 2011). They have become a major force behind nations economy’s for this reason. Because of their size, they constitute a large percentage of the organization of the informal sector, although, most players in the informal sector are not registered. Also linked to their size and proportion, they contribute heavily to employment and gross domestic product (GDP). These two features of SME’s have been the focus of developing countries and a major influencer behind developing countries government lobbying, apart from foreign direct investments and aid projects. Entrepreneurship in general has major roles and responsibilities within Kenya’s economy, and the economy of any nation for that matter (Irungu, 2014). Some of these include; †¢ Production of goods and services †¢ Employment creation †¢ Income generation †¢ Reduced poverty †¢ Increased government revenue †¢ Infrastructure development Some parallels and extensions between these roles, and the roles for SME’s can be drawn therefore to include the following. Employment Role The first benefit of enterprises is considered to be the revenue generated to the owner of the enterprise. When some individuals are hard pressed by the stresses of urban living, they may turn to starting a business as an alternative source of personal income. This way an SME’s can become to them their main source of finance once it is running and has developed a sense of automation. This is important since: †¢ larger firms are constantly downsizing †¢ average wages in decline †¢ limited chances of promotion in competitive job market †¢ low skills mean low income in the job market †¢ li... ...according to the vision 2030 will result I a general decline in poverty as well as increase the gross domestic product of the country. This is a major pillar of the Vision 2030, and so it underlines the role of SME’s. â€Æ' References International Finance Corporation. (2011). Small and Medium Enterprise. Telling Our story, 5(1). Irungu. (2014). Lecture Notes - Role of businesses. Nairobi: Daystar University. McIntyre, R. (2001). The Role of Small and Medium Enterprises in Transition: Growth and Entrapreneurship. Helsinki: UNU World Institute for Development Economics Research. OECD. (2004). PROMOTING ENTREPRENEURSHIP AND INNOVATIVE smes IN A GLOBAL ECONOMY: TOWARDS A MORE RESPONSIBLE AND INCLUSIVE GLOBALISATION. 2nd OECD CONFERENCE OF MINISTERS RESPONSIBLE FOR SMALL AND MEDIUM-SIZED ENTERPRISES (smes). Istanbul: ORGANISATION FOR ECONOMIC CO-OPERATION AND DEVELOPMENT.