Abstract:
Small and medium enterprises (SMEs) constitute an important part in economic development of any
country and contribute considerably to regional development by creating new job opportunities, providing
investment opportunities and forming the economic capital and potential required for sustainable economic
growth. It is observed that whether developed country or developing country, SMEs are the back born of economic
development. These enterprises are playing a major role in decrease of poverty, and unemployment. This study
aims to evaluate the role of SMEs in regional development with in the area of Jaffna Divisional Secretariat. For
this purpose 200 SMEs are selected for this study. SME development projects can play in serving the economic
and social development process in such a way of developing and increasing the volume of exports, contribution
to regional development, incubator of new skills and innovations, assisting social and political stability, provide
support services for large industries. Improvement of Small and medium enterprises increasing living standard of
Labour force in this sector. Data were analyzed through SPSS Software using correlation and regression analysis.
The result shows that there is strong positively relationship between the role of SMEs and regional development
within the study area. The regression analysis also appears with the R2
value of 0.627 which explain that the role
of SMEs impact 62% on the regional development of the study area.
