Premium Essay

Small and Medium Sized Enterprises

In: Social Issues

Submitted By shaunique
Words 435
Pages 2
Small and Medium Size Enterprises (SME’s) are the driving force for the promotion of a Caribbean. Due to its significance, all of the Caribbean countries either developed or developing are concentrating on the development of SME’s. It is an important fact that encouraging entrepreneurship through (SME’s) is a key to improve competitiveness, boost trade volume, fostering economic activities and creation of job opportunities. Small enterprises are considered as main driver for innovation, poverty reduction, employment generation and social integration. Due to innovation in SME sector, the production capacity may amplify which has significant impact for the promotion of economic and social development in the Caribbean.
In the Caribbean, although there has been a long history of entrepreneurship spirit, the SME development was slow and limited to the few sectors that were available. It was only in the early eighties where some diversification took place with the start of the tourism development. Since then, Tourism has become the main economic activity of many countries and destinations in the region. Two decades later, all related SME developments in the hospitality, the light manufacturing, agro-processing and the service sectors seems to be insufficient to give us a competitive edge in keeping up with the world’s economic and social developments. One thing everybody agrees on is that, regardless the size or the nature of any economy, no effective Globalization is possible without SME Development. In fact, gradually the SME Sector is becoming the major source of employment and tax generation. In the large economies, the SME development has covered almost all sectors and has shown several measured successes that has attracted the full attention and support of Governments and the Decision Makers. They became the measuring sign of economic growth and stability.

The…...

Similar Documents

Free Essay

Small and Medium Sized Enterprises and Their Effect on the Economy

...INTRODUCTION This report talks about a subject that affects the whole economy in all countries. Small and medium -sized enterprises (SME’s) play an effective role in solving many economic problems such as unemployment. Therefore, SME’s are at the heart of economic growth. The purpose of my report is to show how SME’s help the economy in overcoming some problems. Also, this report discusses some SME difficulties and their solutions. This report has three chapters. The first chapter consists of background. The second chapter is about SME problems. The last chapter discusses a real life example of a small business in Saudi Arabia. I. BACKGROUND This chapter defines SME’s and explains their importance. A. Definition of SME’s The SME definition is different from one country to another. In Saudi Arabia for example, small firms are identified by the Saudi Chambers of Commerce as firms which have 10-25 staff and whose assets are SR one million. On the other hand, the firms that employ 25-100 staff and their assets are SR 5 million are called medium- sized firms. (5:197) The definition of SME’s in the UK is as follows: the enterprises that have less than 50 workers are small enterprises whereas the enterprises that employ more than 249 workers are medium- sized. (1:1) B. SME’s Importance The effect of SME’s on the economy appears in many dimensions. Governments face several problems related to unemployment; SME’s can solve these problems (6:1). In...

Words: 1329 - Pages: 6

Free Essay

Sme Issues

...March 2011 Training Strategies in Small and Medium-sized Enterprises from the Perspective of Technology Innovation AiYing Li (Corresponding author) Lin-Yi University Shandong Lin-Yi 276005, China E-mail: linq1959@163.com Lin Ye Shanxi Normal University Shanxi Lin-Fen 041004, China E-mail: linyegreat@126.com Received: October 18, 2010 Abstract It’s very important to know the training needs of enterprise's past and present demand, training activities planning often starting to solve problems of the past and present. Based on technical innovation training, training analysis is ascending into the strategic level, standing in a new height. Through the analysis of the role which enterprise training plays in technology innovation, based on the enterprise development strategy, job analysis and technical requirements; propose technical processes in small and medium-sized enterprises. From the Angle of enterprise technology innovation, put forward the enterprise training strategies which should be adopted in small and medium-sized enterprises. Keywords: Enterprise training, Small and medium-sized enterprises, Technology innovation, Training strategy 1. Introduction: The number of small and medium-sized enterprises in China accounted for 99.3% of total national enterprises, 55.6% of national GDP, 74. 7% of industrial added value, 58.9%of social sales tax, revenue 46 percent and exports 62.3% are created respectively by small and medium-sized enterprises and approximately 75% of the......

Words: 2322 - Pages: 10

Premium Essay

Marketing

...Journal Article Critique: Brand Management in small to medium – sized enterprises. In the journal – Brand management in small to medium – sized enterprises, the author mentioned that although there were many journals or studies talking about important activities involved in brand management in large organizations (LOs) with well-established brands, no study has been made to research branding in small and medium sized enterprises (SMEs). This journal therefore has been made to examine the role and scope of branding management in small and medium enterprises. In the old mindset, brand management just applied and took effect in large organizations with sustainable budget, in this journal authors has given out a new concept that branding management also takes effect in small and medium sized enterprises. Although there is a clearly difference in management style of large organizations and small to medium size enterprises, the role and scope of brand management in both is totally the same. Brand management can also help SMEs in entering the market or position their product in customers’ mind… but in a smaller scale and budget compared with LOs. Therefore, from the journal we can see that the authors pointed out the characteristic of small to medium sized enterprises and large organizations. Besides, they also mentioned how small to medium sized enterprises or large organizations apply in branding management (the similarities and differences) In my point of view, one of the......

Words: 381 - Pages: 2

Free Essay

Flexible Working

...is also a way of working that suitable for the employees.Almost all large enterprises to provide flexible working, 95% of small and medium-sized enterprises (SMEs) are also provided (CIPD, 2012). After the economic crisis in 2008, economic growth stagnated, economic recession led to a rise in unemployment. The government encouraged enterprises to adopt flexible working to the worker such as zero-hour contract(ECONOMICS,2015). Labor market gradually aging, so it is difficult for many employers to hire have professional workers, but if the company provides flexible working, it can make employers to recruit to talent. Therefore flexible working arrangement can make a number of employers to to achieve the goal of cost reduction. Before the advent of the flexible working, British had a relatively open and flexible labour markets. Therefore, for the emergence of flexible working is not accidental. Flexible working arrangement is adapt to the development of modern ways of working, employees and employers can all benefit from this approach. Employers and employees could flexible arrange their ways of working, which can make the enterprise to constantly adapt to changes in business and employees to better balance work and family(CIPD, 2012). Flexible working arrangement for employees and employers are all useful. This report will analyze the feasibility of Small and medium-sized enterprises in the United Kingdom introducing flexible working arrangements, in......

Words: 1439 - Pages: 6

Premium Essay

Managing Uncertainty

...analysis of supply chain risk management in small and medium sized enterprises. International Journal of Production Research, Vol. 49, No. 18, 15 September 2011, 5511 – 5525. Research Classification In the past years, a fairly new research area has emerged on the supply chain management scene and has gained considerable attention from both academics and practitioners: Supply chain risk management. Thun, Druke, and Hoenig set out to empirically investigate, supply chain risk management in small to medium sized companies. By analyzing data from 67 various German automotive manufacturing plants, the authors seek to identify the key drivers of supply chain risk and look at the various methods or instruments of supply chain risk management to determine their suitability by comparing those smaller enterprises with the larger companies. The results are visualized in the probability-impact-matrix distinguishing between internal and external supply chain risks. Statement of Problem The authors sought to answer two main questions: What are key drivers of supply chain risks, and what is their likelihood to occur and their potential impact on the supply chain? and, what are the instruments for dealing with supply chain risks and their impact on performance? These questions gave way to three Hypothesis: H1. Small to medium-sized enterprises regard their supply chain as more vulnerable that large scale companies. H2. Small and medium sized enterprises are affected more strongly by......

Words: 778 - Pages: 4

Premium Essay

Financial Problem for Chinese Small to Medium Sized Companies

...Chinese Small to Medium Sized Companies Abstract In the recent years, small to medium sized companies (SMEs) play an important role in most countries over the world. It has been a vital policy issue for governments to deal with these companies to increase development of economy. The financial difficulties faced by SMEs have restricted SMEs’ survival and development. SMEs exist a series of financial problems. This article focus on how to obtain effective financial source and dealing with the difficulties in raising finance for Chinese SMEs. Key words: Small and medium-sized Companies (SMEs); Financing. Introduction SMEs are the necessary power for economy growth. As Beck and Demirguc-Kunt (2005, p2932) said that there was robust partial connection between the importance of SMEs in manufacturing and economic development. According to Ayyagari (2007), formal SMEs contribute to 50% of GDP on average in developing countries and World Bank views SMEs as a core element in developing economy and employment. In China, the number of registered SMEs exceeds 40 million, accounting for more than 99 per cent of enterprises. As a private sector, SME has become a driving force since the economy began to recover in 1978 (Fan, 2007). And it makes up more than 70 percept of the GDP. According to Brookfield, SMEs can be regarded as unquoted small businesses and a medium for self-employment of the owners that are organized by few individuals, typically a family group and 
act as a medium......

Words: 2540 - Pages: 11

Premium Essay

Issues in Management Essay

...international division of labor is increasingly deepening. Enterprises, as one of the most important elements in global value chain are facing both opportunities and challenges. Traditionally speaking, medium sized enterprises (SME) are primarily facing towards their home-market (Lindmark, 1998). However, due to the trend of globalization, more small and medium-sized enterprises have already started international expansion (Knight and Cavusgil, 1996). In the process of economic globalization, the competitive advantage depends largely on the enterprise innovation and the ability to enter into the market quickly. This essay will discuss the globalization process of a manufacturing company located in a G7 economy making high quality agricultural equipment and both the positive and negative features of globalization. The globalization process of the company Although internationalization is a common sense in today’s marketing, however, to discuss the internationalization process of enterprise, it is important to define enterprise internationalization itself clearly. Beamish(1990) defined enterprise internationalization as "the process by which firms both increase their awareness of the direct and indirect influence of international transactions on their future, and establish and conduct transactions with other countries." (Beamish, 1990, p. 77) It can be concluded that there are two most important elements in enterprise internationalization — internal organization and external......

Words: 2142 - Pages: 9

Free Essay

Entrepreneurship and Small Business

...Entrepreneurship and Small Business By: Miguel Serodio 12/11/2011 Index Introduction......................................................................................................................page 3 Core...................................................................................................................................page 4 References........................................................................................................................page 8 Bibliography.....................................................................................................................page 9 Introduction In 1985 an the Companies Act was brought up to define better the size of small business in order to make it more clear than before, the Bolton Committee. The new act defined the business by setting maximum criterions of annual turnover, annual balance sheet total and the number of employees. This act helped to define in a practical way than before, for the reason that the Bolton Committee used to have a large number of definitions such as under 200 employees for manufacturing firms to £50 000 turnover for retailing, and up to five vehicles or less for road transport. With so many different criterions it was unpractical to define what, so the Companies Act defined that there was two groups of small and medium firms. Small business would have a maximum annual turnover of £2.8 million with an annual balance sheet total of......

Words: 1836 - Pages: 8

Premium Essay

Writing

...restricting the development of Chinese Small- and Medium-sized Enterprises (SMEs)? In recent years, banks are reluctant to lend to SMEs. And they would rather provide loans for large-scale enterprises than for SMEs. Monetary tightening policy and high inflation rates have made the situation worse. Information asymmetry, high risks, and macroeconomic environment are leading to SMEs’ shortage of funds. How to solve this problem? Attention Grabber Small- and Medium-sized Enterprises (SMEs) are thirsty for funds! Unable to get loans and lack of funds, SMEs are faced with financial difficulties. Monetary tightening policy and high inflation rates have made the situation worse. Information asymmetry, high risks of SMEs, and macroeconomic environment are leading to SMEs’ shortage of funds. The shortage of funds is the main bottleneck to restrict the development of SMEs. Anecdote Jack was an entrepreneur of a small company in Zhejiang Province. He committed suicide after his company went bankrupt because of capital chain rupture. Unfortunately, many entrepreneurs of Small- and Medium-sized Enterprises (SMEs) are faced with the rough financial situation in recent years. Information asymmetry, high risks of SMEs, and macroeconomic factors are factors leading to SMEs’ shortage of funds. Capital chain rupture is a main threat to SMEs. General Topic Introduction Information asymmetry, high risks of Small- and Medium-sized Enterprises (SMEs), and......

Words: 292 - Pages: 2

Premium Essay

Strategy

...Management | BA60033E | | OPTION | Consumer Behaviour | MS60046E | | OPTION | Employee Relations | HR60010E | | OPTION | International Business Finance | AC60063E | | OPTION | Managing Small Medium Sized Enterprises | MS60047E | | SEMESTER TWO MODULES CORE | Strategic Management | MS60043E | CORE | Dissertation | BA60034E | CORE | Financial Management | AC60062E | BA BUSINESS STUDIES WITH INTERNSHIP – BUSINT001E3 SEMESTER ONE MODULES PLEASE TICK ONE OF THE BOXES TO SHOW WHICH OPTION YOU WISH TO TAKE CORE | International Business | MS60045E | | CORE | Project Management | BA60033E | | OPTION | Consumer Behaviour | MS60046E | | OPTION | Employee Relations | HR60010E | | OPTION | International Business Finance | AC60063E | | OPTION | Managing Small Medium Sized Enterprises | MS60047E | | SEMESTER TWO MODULES CORE | Strategic Management | MS60043E | CORE | Dissertation | BA60034E | CORE | Financial Management | AC60062E | BA BUSINESS STUDIES WITH MARKETING – BUSMKT001E3 SEMESTER ONE MODULES PLEASE TICK ONE OF THE BOXES TO SHOW WHICH OPTION YOU WISH TO TAKE CORE | Consumer Behaviour | MS60046E | | CORE | Project Management | BA60033E | | OPTION | Employee Relations | HR60010E | | OPTION | Managing Small Medium Sized Enterprises | MS60047E | | OPTION | International Business | MS60045E | | SEMESTER TWO MODULES CORE | Strategic Management | MS60043E | CORE | Dissertation | BA60034E | CORE |......

Words: 385 - Pages: 2

Premium Essay

Saas Technology for Smes

...Technology for SMEs | Kriti Soral | Table of Contents Introduction 2 Small and Medium sized Enterprises 2 SMEs in India 3 SMEs and ERP 3 Barriers to implementation of ERP systems in SME’s 4 Strategies used 5 Saas Technology 5 Advantages of SaaS for SMEs 6 SaaS Vendors 7 Case Studies 7 SAP for 10 Users Company- Heckler & Koch GB 7 SaaS ERP for Oxford Bookstore 9 References 10 Introduction Small and Medium sized Enterprises (SMEs) can mostly be considered as responsible for driving the competition prevailing in economic sectors. The definition and standards of a SME is different for different countries. These enterprises play an important role in setting the market trends and with this a need of using Enterprise Resources and Planning systems (ERP) for optimizing and automating their traditional business processes has aroused. But often ERP systems development, implementation and maintenance are very costly which makes it difficult for SMEs to use them. As a solution to these problems ERP system vendors now offer all the facilities of ERP system to the company without actually installing the hardware and software on the client side and this facility is referred to as Saas technology. This paper discusses SMEs of India, barriers of implementing ERP in SMEs, strategies used by ERP vendors and brief description of SaaS technology. Small and Medium sized Enterprises SME sector has been identified as an accelerator for economic growth......

Words: 4196 - Pages: 17

Free Essay

Empowerment of Msme

...Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 in terms of which the definition of micro, small and medium enterprises is as under: (I) Enterprises engaged in the manufacture or production, processing or preservation of goods as specified below: (i) A micro enterprise is an enterprise where investment in plant and machinery does not exceed Rs. 25 lakh; (ii) A small enterprise is an enterprise where the investment in plant and machinery is more than Rs. 25 lakh but does not exceed Rs. 5 crore; and (iii) A medium enterprise is an enterprise where the investment in plant and machinery is more than Rs.5 crore but does not exceed Rs.10 crore. (II) Enterprises engaged in providing or rendering of services and whose investment in equipment (original cost excluding land and building and furniture, fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act, 2006 are specified below. (i) A micro enterprise is an enterprise where the investment in equipment does not exceed Rs. 10 lakh; (ii) A small enterprise is an enterprise where the investment in equipment is more than Rs.10 lakh but does not exceed Rs. 2 crore; and (iii) A medium enterprise is an enterprise where the investment in equipment is more than Rs. 2 crore but does not exceed Rs. 5 crore. Ministry of Agro and Rural Industries and Ministry of Small Scale Industries have been merged into  a single Ministry, namely, “MINISTRY OF MICRO, SMALL......

Words: 1839 - Pages: 8

Premium Essay

Life

...Small Places Can Change the World The Role of Information Technology in Small and Medium Sized Enterprises in Kosova Dr. Mihane Berisha-Namani1 Abstract Information technology had a great impact in all aspects of life and the global economy is currently undergoing fundamental transformation. Information technology has very real impact in most of industries and in all aspects of economy, while businesses and enterprises continue to undergo considerable changes. Usage of these technologies is revolutionizing the rules of business, resulting in structural transformation of enterprises. Modern businesses are not possible without help of information technology, which is having a significant impact on the operations of Small and Medium Sized Enterprises (SME) and it is claimed to be essential for the survival and growth of economies in general. SME is drawing attention in developed and developing countries as well as in transition countries. It is generally recognized that SME play a key role in the revitalization and development of national economy in many countries and particular in the context of Kosova. It is encouraging the development of SME and the role that SME sector can play in promoting economic and social development by creating opportunities for employment. These components are described and discussed while more research and studies on the adoption of information technology in SME in Kosova are proposed as necessary. Key words: Information technology, Small and......

Words: 3635 - Pages: 15

Free Essay

A Universal Definition of Small Enterprise World Bank

...A Universal Definition of Small Enterprise: A Procrustean bed for SMEs? SUBMITTED BY KHRYSTYNA KUSHNIR ON WED, 2010-08-11 11:43 Editor's Note: Khrystyna Kushnir is a consultant on micro, small and medium-sized enterprises with the Enterprise Analysis Unit of the World Bank Group. At the G-20 summit in Pittsburgh last year, the assembled authorities agreed to "scale up successful models of small and medium-sized enterprise (SME) financing." The G-20 assigned the IFC and other international organizations to launch a G-20 Financial Inclusion Experts Group and asked the private sector to come up with ideas through G-20 SME Finance Challenge. This increased attention to micro, small and medium-sized enterprises (MSMEs) begs the question -- what, exactly, should be considered an MSME? With the issue of MSMEs playing out on an international level, it is tempting to try to find a universal MSME definition. A universal MSME definition would ease the design of loans, investments, grants and statistical research. One such effort is IFC’s SME Definition Deep-dive Analysis and Recommendations, although it's currently on hold because of internal restructuring. As part of the G-20 follow-up work, IFC is currently working on a 2010 update of the Micro, Small, and Medium Enterprises: A Collection of Published Data. While recording the various definitions of MSME used in 120+ of the most populous world economies, I was struck by the wide range of approaches governments take to define what...

Words: 780 - Pages: 4

Premium Essay

Sme Development in Ghana

...INTRODUCTION There is no universally agreed definition of Small and Medium Enterprises (SMEs). Some define them in terms of their total revenue, while others use the number of employees as an indicator. The European Union defines a medium-sized enterprise as one with a headcount of 250, a small firm as one with a headcount of less than 50 and a microenterprise as one with a maximum of 10 employees. The National Board for Small Scale Industries (NBSSI) which is the regulatory body for SMEs in Ghana defines SMEs in terms of both fixed asset and number of employees. It defines an SME as an enterprise with turnover greater than US$200,000 and not more than US$5 million equivalent (NBSSI) The SME market constitutes the vast majority of businesses in Ghana and over the years has evolved to become the key supplier and service provider to large corporations, including multinational and transnational corporations. Principally, SME’s has contributed to: Expanding output; Providing value-added activities in the manufacturing sector; Creating employment opportunities especially in the services sector; Contributing to broadening Ghana‟s export base; Increased competition; Innovation; SMEs are important to almost all economies in the world, especially to those in developing countries. They contribute to productivity and job creation; they serve as a nursery for larger firms constituting the next step for micro enterprises (Palma and Gabriel, 2005). In addition,......

Words: 1907 - Pages: 8