Small and medium enterprises and economic growth in Algeria through investment and innovation

Abstract

Small and medium enterprises play a vital role in ensuring the continuity and sustainability of economic development as they constitute an important starting point for economic growth, through their ability to provide job opportunities and their role in diversifying the industrial structure and assisting the main structures in production. These institutions operate at the national level and push them towards facilitating and continuity of their work, which made them of great importance in achieving development and embodiment at the national level. This study aims to highlight the role of small and medium enterprises in pushing the economies of countries towards development, through their contribution in various areas of development, as these institutions have become a strategic option and the most practical alternative to achieve balanced growth, and this can only be achieved with real support for these institutions. Small, and medium enterprises are an important element in economic development, as they are considered a major driver of the countries’ economy and a source for creating wealth and satisfying economic and social needs. They contribute to reducing the unemployment rate, raising the gross domestic product, creating an added value to the economy, and increasing the proportion of international trade exchanges. In completing our scientific research, we relied on a questionnaire distributed to small and medium-sized enterprises in the state of Oran. We also used a set of tools represented in the interview and observation. The study was based on 38 small and medium enterprises in the state of Oran. The obtained result showed the validity of the hypotheses. These institutions contribute greatly to the economic and social growth of the state, as we extracted from the obtained results. 68% of the studied sample contributes to raising the gross domestic product by 95% to creating an added value by 95℅, and 11% of the studied sample exports its products outside Algeria, This is what prompted Algeria to rely on small and medium enterprises to ensure strong economic growth, but this sector still has not risen yet to be a source of wealth and an engine for development for Algeria because there are several obstacles facing small and medium enterprises.