Impact of Malaysia Budget 2013 on Small and Medium Enterprises Assignment

Impact of Malaysia Budget 2013 on Small and Medium Enterprises - Assignment Example Small and medium-sized enterprises have had bigger challenges in their business performance, incursion, and marketing, compared to the large enterprises. The Malaysian 2013 budget has given indicated considerable efforts to emphasize on the need of SMEs in economic development, and vision 2020 of attaining an industrialized nation-state (â€Å"Budget 2013,† 2012). The government policies through the 2013 budget initiatives provided financial support for the enterprises straddling across large and small enterprises, focusing on the youth and women through loans and financial support in investments across the local regions. The loans and funds have subsidized charges on interest rates, which the government is collaborating with financial institutions for easy access to the SMEs. The tax and non-tax incentives will reduce the expense of operation in enterprises consequently saving money channeled by enterprises from incentives (â€Å"Budget 2013,† 2012). The budget could a lso influence the SMEs through ICT infrastructure, entrepreneurship training to improve national GDP, revenue, investment, and enhance economic growth. The small and medium scale enterprises form the backbone of the majority of the developing nations’ economy. These enterprises play a significant role in facilitating the considerable growth of the economy; however, financial constraints and inhibiting the competitiveness nature, which pushes every entrepreneur and businessperson, to improve the worth and quantity of market goods and services remains a significant obstacle (â€Å"Budget 2013,† 2012). In the past, Malaysian SMEs have been struggling to expand beyond their national boundaries, so that they can compete internationally, especially in the current wave of globalization.