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Abstract
As a result of economic globalization and a changing business environment, small and medium-sized enterprises "SMEs" continue to suffer the adverse effects of the arduous and fierce competition. In this new business climate, SMEs are expected to improve their performance, especially in emerging and developing countries context. To improve the performance of the SMEs in these countries, upgrade programs have been implemented by public authorities. So, the research conducts a performance analysis on upgrade programs for (SMEs). These programs are prepared for SMES in emerging and developing countries. The study is a literature review on upgrade programs for SMEs in emerging and developing countries. This study seeks to theoretically find if there is a relationship between the achievement of an upgrade program and the performance of SMEs. Thus, the study comes to develop a theoretical model supporting the effect of upgrade programs on the SMEs performance. This model could be applied to any context of emerging and developing countries, Algeria is a practical case.
Key words: Upgrade programs, government programs, performance analysis of SMEs, emerging and developing countries, Algeria.
Paper type: Theoretical paper
1.Introduction
In a changing world, small and medium-sized enterprises "SMEs" continue to suffer the adverse effects of economic globalization and the conditions of open and intense environment, according to Lejárraga, I. et al. (2014). These enterprises confront a difficult and hard competition to the disadvantage of SMEs that are really uncompetitive and inefficient, especially in the context of developing countries. This new business environment requires taking into account the development of SME, insert it into the arena of national and international competition and ensure the promotion of a more efficient SMEs (Guo and Cao, 2014; Appiah et al. 2015).
By consensus, SMEs are generally represented by most enterprises in developed and developing countries (Krasniqi et al., 2015). They employ a large segment of the workforce and contribute significantly to the national economy (Ayyagari et al., 2014). It is recognized that, SMEs safe, efficient and dynamic sector, plays a key role in the creation of the international competitive advantage (Hall, 2003) and provides economic development (APBSD, 2004). In recent years, there has been an increasing focus, in these countries, to this sector of business. It must respond to the new...