Economics of small and medium enterprises Essay

Economics of small and medium enterprises - Essay Example This essay offers a comprehensive review of the current economic policy of the UK government towards small and medium-sized enterprises. The efficiency of such policy is also analysed. The smaller firms are less fortunate to obtain significant financial aid to combat their insolvency problems. The successive governments in UK have been witnessing comprehensive policy initiatives for uplifting the small enterprises. The very existence of SMEs is vital for the overall economic growth of the developing nation of UK. For preserving the economic opulence of the country, the existing small enterprises must be rescued from all hindrances of sustainability. The threat to these business units resulting into critical problems such as severe unemployment and decline in the economic growth has made the Government to identify the urgency to rescue such SMEs from collapsing. Various action plans and schemes have been taken up by the government for protecting these enterprises. However, the government itself, along with others, admits that a lot of work is yet to be done for achieving the success of reviving small enterprises. There lies a wide gap between preparation of plans and measures, and putting them into appropriate actions thereby ensuring viable results. Impeccable efforts are still missing in order to bridge up this gap. In spite of the endeavours for complete eradication of the barriers faced by the struggling small business firms, a viable implementation of actions for the revitalisation of the SMEs is still lagging far behind.