The Effect of Entrepreneurship and Small and Medium Enterprises (SMEs) on Productive Employment: Evidence from Selected Developing Countries

Creating appropriate job opportunities has been considered one of the ways to achieve sustainable development and economic growth. Evidence from developed countries shows that entrepreneurship can lead to improvement in wealth and technology as well as employment. Indeed, enhancement of SMEs is a good way for entrepreneurship development. This paper attempts to investigate the role of SMEs in employment creation in some developing countries by using the method of Panel Data. Based on empirical results, the increased number of SMEs will yield benefits to developing countries for faster economic growth in their transition period.