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The Role of Small and Medium Enterprises in Achieving Local Development


Tahar Ammar Jouili, Mohamed Anis Allouche


Vol. 20  No. 5  pp. 18-21


In recent years the idea of local development is attracting the attention of scholars worldwide, especially with the spread of Small and Medium-sized Enterprises (SMEs) globally. SMEs are considered as a pillar for achieving local development through employing local resources, diversifying economies, providing goods, and reducing unemployment and poverty. The major objective of this study is to assess the SMEs' role in the local development of the Northern Border Region of Saudi Arabia through four dimensions: job creation, satisfying community’s requirements, besides widening income and reducing poverty, and protecting the environment. This study is apparently incorporating environment and consumer health as a component of local development. A questionnaire is used as a tool for collecting data from a large segment of owners of SMEs in the Northern Border Region. Descriptive statistics and regression analysis are used to study the impact of SMEs on local development dimensions. Findings show first that SMEs have a significant role in the local development of the Northern Border Region, and second there is no positive SMEs’ contribution to local development via protecting the environment and consumer health in the region.


Local development, Small and Medium-sized Enterprises, Northern Borders Region.