THE IMPACT OF SMALL AND MEDIUM ENTERPRISES (SMEs) ON ECONOMIC GROWTH IN AMERICA

SMEs play a critical role in the economic growth of every nation, such as generating work opportunities, income and wealth creation, and poverty reduction. These enterprises are very important in less developed economies. SMEs have become preferred economic entities and have an easy and quick adaptation. The existence of SMEs helps inefficient consumption of nearby assets and boosts economies all over the world. SMEs constitute an integral part of developing economies through imports and commodities prices, which generates global economic success. In the worldwide economy, they assume a vital role through their critical commitment to GDP (Gross Domestic Product) and boosting the comfort of societies. It also provides more employment to people in various economies as compared to larger organisations and therefore leads to poverty alleviation. Generally, advanced nations have 90 percent of their enterprises in the SME sector, and it's one of the remarkable reasons for their financial development. In developing nations, the SME sector plays an essential role in achieving Sustainable Development Goals (SDGs) by creating job opportunities, alleviating poverty, promoting innovation and fostering sustainable industrialisation, and reducing income inequalities. Qualitative research was used in this study. An extensive literature review regarding the importance of SMEs in the American economy was explored. This study aimed to investigate the impact of SMEs on economic growth in America. This aim was achieved by an extensive literature review which revealed that SMEs have a positive impact on economic growth in America. The study concludes that SMEs have a positive impact on economic growth in America. SMEs are vital to the economic growth of any country. The successful establishment of SMEs leads to employment opportunities and growth in all economies. In view of the study results, it is thus recommended that the government of America should establish a new support agency for SMEs. The American government should improve the public’s view of SMEs. It is further recommended that the American education system should reform in order to provide SMEs with the skills they need to thrive.