Decoding the Challenges and Skill Gaps in Small- and Medium-Sized Enterprises in Emerging Economies: A Review and Research Agenda

Abstract

Introduction: Small- and medium-sized enterprises (SMEs) play a vital role in the economic development of economies by generating job opportunities. Considering their significance, understanding the challenges and skills required in these enterprises becomes essential and timely.

Purpose: This study aims to discuss the limitations and skill gaps faced by SMEs in emerging economies, such as India, Indonesia, Brazil, China, Malaysia, Ghana, Hungary, Saudi Arabia, South Africa, Türkiye, UAE, Iran, Kazakhstan, Türkiye, Zambia, Romania, and Vietnam.

Methodology: The study adopts a systematic review and meta-synthesis approach, utilising a literature review to comprehensively analyse, synthesise, and map the existing literature by identifying overarching themes.

Findings: The study examines the challenges SMEs encounter in emerging economies, including resource scarcity, limited access to credit, inadequate infrastructure, low technology adoption, restricted global market access, and ineffective marketing strategies. There is a notable shortage of skilled labour and development initiatives within SMEs in India even though the country has a sizeable pool of qualified workers. There is a pressing need for additional technical and managerial skills to remain competitive in the market. The findings of this study will assist HR managers in addressing skill shortages among employees in SMEs operating within emerging economies

Citation

Mer, A. and Virdi, A.S. (2024), "Decoding the Challenges and Skill Gaps in Small- and Medium-Sized Enterprises in Emerging Economies: A Review and Research Agenda", Thake, A.M., Sood, K., Özen, E. and Grima, S. (Ed.) Contemporary Challenges in Social Science Management: Skills Gaps and Shortages in the Labour Market (Contemporary Studies in Economic and Financial Analysis, Vol. 112B), Emerald Publishing Limited, Leeds, pp. 115-134. https://doi.org/10.1108/S1569-37592024000112B007