Small and Medium Scale Enterprise Role of Economic Growth

This study examines the effect of SMEs' performance indicators on business turnover as a dimension of economic growth, in a manner which SMEs can improve their performance for effective contribution to economy of Borama city such as utilization local production and social economic development. Challenges hinder SMEs performance also examines in this study, SMEs in Borama face militating problems while government and related institutions giving no attention also there is no clear SMEs policy. Financial problem and lack of government support become the main SMEs problem and blocks potentials improvement and their contribution to economy. For that reason, the study used to uncover the effect of SMEs performance indicator on business turnover as a dimension of economic growth in Borama. Primary data gathered from the responses of 211 SMEs operating in Borama. The result indicates that SMEs performance indicator of business turnover portrayed negative effect on profitability of the business and Entrepreneurship. Investment, employment and infrastructural development followed SMEs establishment show positive influence SMEs performance indicator of business turnover.