| Miêu tả |
It has been recognized that small and medium enterprises (SMEs) play a vital role in economic
development and income growth in many countries, as they have been the primary source of job or
employment creation world-wide; not only in less developed countries (LDCs) but also in
developed/industrialized countries. This paper is one part of an ongoing study on the performance of
SMEs in Indonesia in comparison with other APEC economies. This paper consists of two parts. The first
part deals with theories in explaining the relationship between different pattern of development of SMEs
and different levels of economic development. The important question here is: whether SMEs will be outcompeted
by large enterprises (LEs) in the course of economic development, measured generally by the
increase in income per capita. The second part presents and discusses recent data on development of
SMEs in Indonesia. The evidence shows that SMEs in Indonesia are indeed very important. Their
importance in the Indonesian economy is observable reflected by their relatively huge number of units.
Totally, in all sectors of the economy, the number of SMEs is huge and it keeps growing; though there was a
decline during the 1997 economic crisis. Their number of units is larger than that of LEs, and they contribute
the bulk of units and employment in sectors such as agriculture, trade, manufacturing industry and
transportation. This evidence rejects a general hypothesis that the economy the shares of GDP and economic
activities will be dominated by LEs at the higher level of development.
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