The role of small and medium enterprises in supporting economic development: Evidence from Malaysia

Abstract

This study explored role of small and medium enterprises in supporting Malaysian economic development. The study reached a set of results, the most important of which is that small and medium enterprises contribute up to 35.9% to the gross domestic product, the added value of small and medium enterprises is 36.3%, and the employment rate is 65.5% of the total workforce in Malaysia. The most prominent challenges facing small and medium enterprises in Malaysia are the limited capacity to manage technology and acquired knowledge.