5 Conclusion and Implications
The role of small and medium enterprises is worldwide acknowledged for their unique contribution to the economic development. Both the developed countries and the ones in course of development realise that the SMEs and the entrepreneurs play a vital role in the industrial development of a country. So, there is no surprise that the political strategists have often thought that the SMEs can become the “seed” of economic revival. In this study we found that the SMEs are important to the Malaysia economies which comprise 99.2% of total business establishments, where SMEs contribute 32% of Gross Domestic Product (GDP). SMEs as a whole and all the SME sub-sectors have a high correlation with GDP which shows their significance. Services sector contributes as a biggest chunk of total SMEs and is growing with a fast pace. Mining and quarrying has been the smallest sector which might be due to high competition and intensive capital requirements which are necessary part of the sector. Services based SME sector basically includes tourism, education, medical services etc. which can be promoted to grow further.