Economic constraints such as depressions and high

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economic constraints, such as depressions and high inflations rates, these economies manage to register a favorable balance of trade in a majority of their financial years (Dolai, Behera, Singh, & Panda 2016). As a result, their currency value is elevated to relatively high values. Agreeably, a high currency value gives the national economy a high bargaining power in the global market, which, in turn, enables it to secure sustainable and reliable trade deals with other countries. Apart from the high bargaining power, the volume of production realized by SMEs is relatively high than that of multinational corporations. A majority of SMEs are able to export their products through the e-commerce platform, which leads to the realization of high export volume. In this case, supporting an entrepreneurial culture has a direct implication on the increment of productivity rate of a given economy. Implications of SMEs in Enhancing High Fiscal Prudence From an economics perspective, fiscal prudence is accrued from sustaining low inflation rates and increasing participation in international trade. Up to mid-1990s, large corporations were regarded as the main economic drivers because they had the capacity to register high volumes of exports (Rudenko, Zaitseva, Larionova, Chudnovskiy, & Vinogradova 2015). On the other hand, SMEs experienced limitations, such as high capital requirements and trade restriction when pursuing market diversification. However, after the enhancement of globalization and advancement in technology, more SMEs began engaging in international trade. Online shipment agencies enabled SMEs to distribute goods to consumers around the globe. As a result, the export
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ROLE OF SMES IN PROMOTING SOCIAL ECONOMIC GROWTH 11 volume accumulated by SMEs increased at a considerably high rate through the e-commerce business. By 2014, the volume of SME exports around the globe was 23% higher than that of multinational companies. In this case, the overreliance on large companies to enhance a favorable balance of trade has declined in the last decade. Given that SMEs realizes a higher export volume in the modern economy, it is evident that they have a relatively higher and direct influence on the national currency. Hence, they are more significant drivers of economic growth than the multinational economies. The high export volume realized by small and medium-sized enterprises enables the economy to register low inflation rates and high currency value. Monetary economic concept argues that a country with a high volume of exports experiences low inflation rates because it manages to finance a large percentage of its national budget (Talimova & Kalkabaeva 2016). Consequently, the economy is not affected by the huge loans and bonds acquired from the public sector. By managing to finance the national budget through high returns on export, the economy is regarded as productive and the high exchange rates in the global market lead to enhancement of high currency value, which, in turn, maximizes the economy’s influence in the international trade.
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