The model comprises a methodology and policy framework that proposes a global implementation plan for institutional capacity building for the promotion and development of small to medium enterprises (SMEs) in a manner which advocates public-private partnership, regional SME marketplaces, use of time-shared properties for setting up low cost entrepreneurship workshops, and communal portfolios of SMEs. The model is used to analyse the role of SMEs in the economy, and their interrelationships with the business cycle, the knowledge cycle and the macro-economic cycle. This formulation leads to a unique set of differential mathematical equations to model the dynamic impact of these key factors on the profit of a small business, and hence its estimated value, as well as the process of SME formation. The quantitative formulation of the variables and their interrelationships is also used to estimate rate of return, and risk.
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