The Impact of Small and Medium Enterprises on Economic Development in Yemen: A Field Study in Aden Governorate

Abstract

This study aimed to examine the impact of small and medium enterprises (SMEs) on economic development in Yemen, taking Aden Governorate as a case study. It highlights the influential role of SMEs in the Republic of Yemen by generating employment opportunities, increasing income, providing goods and services, and qualifying workers. The study population consisted of SMEs in Aden Governorate, while the study sample comprised 128 small and medium enterprises within the governorate.

The study adopted a descriptive-analytical approach and utilized a questionnaire to collect data from owners, managers, and workers in those enterprises.

The study concluded that SMEs play a pivotal role and act as an active engine in driving the wheels of economic and social development. This role is clearly manifested through their fundamental contribution to raising national income levels and reducing unemployment rates by creating sustainable job opportunities.

Furthermore, the results proved the ability of these enterprises to enhance local market efficiency by diversifying the supply of goods and services, which directly contributes to import substitution and reducing external dependency. In addition, these enterprises serve as a strategic incubator for human capital development by refining the skills of the workforce and raising their productive efficiency through continuous training and qualification.