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In recent years, many efforts have been made and many studies have been put forward regarding economic development and the reduction of poverty. The effort to ensure economic development and the alleviation of poverty is mainly focused in the underdeveloped and developing economies. Microcredit and small and medium enterprises (SMEs) are the two main alternative strategies, which can create employment and micro-loan opportunities in many low-income countries. This study aims at capturing and/or discussing the extent to which these two alternative strategies have contributed to the reduction of poverty through the provision of micro-loans, and the creation of employment opportunities, thereby fostering economic development. Moreover, more than 80 percent of enterprises in the world are SMEs. These enterprises accounts for almost 60 percent of the private sector employment and make a large contribution to innovation and support regional development. Most importantly, the SME sector create self-employment for individuals, thereby helping them to be self-innovative.
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