DOI: 10.12688/f1000research.183208.1 ISSN: 2046-1402

SMEs as Agents of Social Cohesion: Opportunities, Challenges, and Conceptual Framework

Dr Malek Al-Edenat, Dr Nayel AL Hawamdeh
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Small and medium enterprises (SMEs) are widely acknowledged as key contributors to inclusive and sustainable development. However, their role as agents of social cohesion remains conceptually fragmented and insufficiently developed. This paper addresses this gap by proposing an integrated conceptual framework explaining how SMEs foster social cohesion through local embeddedness, employment practices, and stakeholder engagement. Drawing on interdisciplinary perspectives from entrepreneurship, social capital, and corporate social responsibility, the study identifies key opportunities, including job creation, social inclusion, and community-driven innovation. It also outlines critical constraints, such as limited resources, weak institutional environments, and the prevalence of informal practices. By synthesizing these opportunities and challenges, the paper advances existing literature and offers a coherent analytical model supported by research propositions for future empirical studies. The study provides valuable insights for policymakers and practitioners aiming to position SMEs as effective drivers of social cohesion, particularly within emerging and resource-constrained economies.

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