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MGT601 VU Assignment No. 1 Spring 2012 Solution

Mgt601 Assignment 1 Idea Solution Spring 2012.

Due date: April, 12, 2012
Lesson: 1 to 8

Underlying issue:
The role and participation of Small and Medium size enterprises (SMEs) have proven the prominence of SME sector in fostering the economic growth in today’s world. Now the government officials have realized that the economy depends upon the flexible and innovative production patterns adopted by SMEs along with large manufacturing units. SMEs sector expansion is no doubt critical for almost every economy around the globe but it is unavoidable for developing countries where unemployment and unequal distribution of income are the chronic issues. It is believed that SMEs can solve many socio-economic problems prevailing in the developing countries. Pakistan, no doubt, is one of those developing countries which are fighting with many chronic socio-economic problems like poverty, unemployment, education and health. It is very unfortunate that SME sector, which is the backbone of the economy, is not treated well so far by the policy makers. The vigorous question that needs special attention is not “what SMEs sector has contributed so far?” but what they are capable of contributing?”

Requirement:

1. As mentioned above that SMEs are more critical for economic expansion of developing countries like Pakistan and environmental factors also support the fact that developing countries are more suitable for SMEs growth. You are advised to probe the issue and give at least ten (10) arguments in the favor of aforementioned the statement. (10 marks)

Solution:

As we know the SME are more critical for economic expansion of developing countries like Pakistan and environmental factors also support the fact that developing countries are more suitable for SME’s Growth

Following are the reasons:

1.It leads to make better the economic condition of the country
2. Decrease the unemployment
3. Increase the opportunities
4. Increase the per capita income
5. Increase the National Income
6. Increase the purchasing power of the people
7.Limit the Vicious Circle of poverty
8. Control Inflation
9. Increase Savings
10. Economic stability
2. Why it is believed that SMEs growth can resolve many socio-economic problems faced by developing countries like Pakistan. Give at least five (5) arguments in the support of your answer. (5 marks)

Solution:

The SME growth can resolve many socio problems faced by the developing countries like Pakistan

Following are the reasons:

1. Employment Opportunities
2. Economic growth of the country
3. Economic Stability
4. Social Needs
5. Increase in the economic development of the country

 

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