THE EFFECT OF SMALL AND MEDIUM ENTERPRISES ON POVERTY REDUCTION IN AFGHANSITAN

Abstract

This paper explores the effect of SMEs (Small Medium Enterprises) on poverty reduction in Afghanistan through alleviation and database. The role of SME is very important in employment generation, poverty alleviation, Gross Domestic Product (GDP) and economic growth which automatically reduce poverty in a country. Annual data used to examine the impact of SMEs on poverty reduction in Afghanistan. This article aims at finding out that which small medium scale and enterprise with use of activities of employment helped to reduce poverty reduction and it is recognized that SMEs is a powerful tool to poverty reduction and economic growth. After three decades of war in Afghanistan, the system and infrastructure of Afghanistan is completely destroyed and after create of temporary government in Afghanistan in 2001, Afghanistan is involved into many protocol and aids program to rescue this country from poverty and raise the poverty line. They raise many tools, regulation and innovation to decrease poverty from Afghanistan and this is a very effective topic to decrease the problem of poverty through SMEs which is corporate with the help of World Trade Organization (WTO), World Bank (WB), United Nation (UN), Japan International Corporation Agency (JICA) and many other organization or Non-Government Organizations (NGOs).