The Small and Medium Enterprises’ Contributions to ongoing Economic Developments in Somalia

Abstract

Entrepreneurship is necessary to raise living standards and promote economic expansion. It is widely believed that small and medium-sized firms are essential for modernization, economic expansion, job creation, and revenue generating. The research focuses on how SMEs may assist Somalia in generating economy progress and job opportunities. A previous study was utilized, and to understand variables, the study employs a quantitative method and a descriptive research design. 201 people made up the sample size that was based on a judgment or intentional sampling technique. The researcher prepared the questionnaire to collect data, and Excel 2010, the SPSS statistics program was used to edit, compile, and tabulate it. Ultimately, in order to increase validity and reliability, researcher fixed some errors and anomalies. According to the study, the main obstacles for SMEs in Somalia are a lack of funding, inadequate management abilities, and specific government policies. The study also showed that the region's developing small and medium enterprises are negatively impacted by nations' inadequate strategy on imported goods, international charity and unrestricted competitiveness. This study came to the conclusion that granting SMEs in Somalia accessibility to capital through banks and large corporations, providing them with sufficient skills, understanding, and enacting strong strategy for their development that will improve them.