StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...

Small and Medium Enterprises - Essay Example

Cite this document
Summary
Small and medium enterprises (SMEs) are considered a key component of the local market, as they serve the customised needs of the local people and local industries. There was a time when such industries used to be the most influential ones for the local economy and the respective governments would do everything possible to keep the SMEs in good humour…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER94.7% of users find it useful
Small and Medium Enterprises
Read Text Preview

Extract of sample "Small and Medium Enterprises"

Download file to see previous pages

OECD (2009) in one its recent reports states that SMEs happen to be key generators of employment and income while driving the innovation and growth potential. In the OCED area half of the labour force has been employed by the SMEs only. Figures of UK employment indicate that out of 4.7 million business establishments in UK 99.3 percent were small firms with about 50 employees, while only 0.6 percent firms were there with 50-249 employees. With globalisation, the management of SMEs have now started giving more thought towards the viability of the venture in the long-term before making strategic decisions for acquiring different types of resources.

The global financial crisis has also impacted the functioning of this sector quite adversely, because they do not have the desired backup of resources, which is available to the larger enterprises. While on the one hand many multinational enterprises have started leveraging the economies of operation in different regions or countries the SMEs are bound to look for ways to contain the damage within the limited areas of their operation. While it is believed that even under normal circumstances, SMEs require specific policies and programmes for their survival and growth, under the global financial crisis, it appears all the more crucial that they are in a position to find out a friendly government.

While on the one hand the government wishes to have more investment from abroad, thus facilitating the MNCs entry into the country, on the other the safeguard of SMEs interests happens to be a major political issue in the country.DefinitionThough SMEs exist in good numbers everywhere around the globe, but there is no uniformity on the definition of SME because of practical considerations. Each country has different classifications of SMEs. Some countries define SMEs based on the number of employees, while others depend on the value of the assets.

In general, the lower employment limit for a small enterprise is between five to ten workers and the upper limit is between 50 to 100 workers. Similarly the upper limit for a medium enterprise is usually set between 100 and 250 employees. However, it is difficult to adopt one definition of SMEs in all the countries, because the state of the SMEs also depends on the size of the markets or the economy in which they are operating. For example, a firm with 50 employees in the USA would be considered smaller (relative to the size of the U.S. economy) than a firm of this size in Bolivia.

In UK, sections 382 and 465 of the Companies Act 2006 define SME based on the turnover and number of employees1. A company with a turnover of not more than 3.26 million and not more than 50 employees is considered a small company and a company with turnover of not more than 25.9 million, with not more than 250 employees is termed as medium sized company.Importance of SMEsSmall and medium enterprises (SMEs) play an important role in a nation's economy. They are resources for innovation and they provide a wide base of employment.

In addition, SMEs are the most essential sector for a healthy dynamic market economy. Chew

...Download file to see next pages Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Small and Medium Enterprises Essay Example | Topics and Well Written Essays - 1250 words”, n.d.)
Small and Medium Enterprises Essay Example | Topics and Well Written Essays - 1250 words. Retrieved from https://studentshare.org/miscellaneous/1507952-small-and-medium-enterprises
(Small and Medium Enterprises Essay Example | Topics and Well Written Essays - 1250 Words)
Small and Medium Enterprises Essay Example | Topics and Well Written Essays - 1250 Words. https://studentshare.org/miscellaneous/1507952-small-and-medium-enterprises.
“Small and Medium Enterprises Essay Example | Topics and Well Written Essays - 1250 Words”, n.d. https://studentshare.org/miscellaneous/1507952-small-and-medium-enterprises.
  • Cited: 0 times

CHECK THESE SAMPLES OF Small and Medium Enterprises

Small and Medium Enterprises of Switzerland

nbsp; small and medium-sized enterprises are also considered as the backbone of the Swiss economy.... (Haathi, Hall and Donckels, 185) small and medium-sized enterprises (SMEs) are one of the principal and also the driving forces in economic development.... The author explains the importance of SME enterprises in Switzerland and the strategic importance of SMEs and identifies the sector and geographical region they are operating.... nbsp;… SME either Small or the Medium-Sized enterprises generally serves as the whole Switzerland, by providing the full range of various services and products from the fixed-line and also from the mobile communications to data service, internet, maintenance as well as the operation of the whole IT infrastructure....
14 Pages (3500 words) Assignment

Economics of small and medium enterprises

This essay talks about the actions of the Government of UK, taken in order to revitalize activities of the small and medium scale enterprises (SMEs) in the country.... This essay offers a comprehensive review of the current economic policy of the UK government towards small and medium-sized enterprises.... The successive governments in UK have been witnessing comprehensive policy initiatives for uplifting the small enterprises.... For preserving the economic opulence of the country, the existing small enterprises must be rescued from all hindrances of sustainability....
10 Pages (2500 words) Essay

Managing small and Medium Enterprises Year 3

ABC Toys Company, an Australian firm headquartered in Brisbane city, was established in 2006 and it masters in production and selling of toys, activity games, and instruments such as remote control electronic toys, medical kits, surround sound system for TV addicts, comfort toys… (Bradley, 2007) for senior citizens who are in the age bracket of 55 years and above....
25 Pages (6250 words) Essay

Impact of Malaysia Budget 2013 on Small and Medium Enterprises

A paper "Impact of Malaysia Budget 2013 on Small and Medium Enterprises" claims that the Malaysian budget 2013 takes into account diverse views and sources on the path of the Malaysian economy.... Like other countries across the globe, Malaysia's economy is built on a solid pattern of small and medium-sized enterprises.... small and medium-sized enterprises have had bigger challenges in their business performance, incursion, and marketing, compared to the large enterprises....
9 Pages (2250 words) Assignment

Small and Medium Enterprises in Globalization Era

Globalization is also the driving force behind many small and medium-sized businesses.... These work asses the impacts of globalization on small and medium-sized businesses and recommends the best approaches to make the process beneficial for both the small and large-scale businesses.... Therefore, the current study analyses the impacts of globalization on the performance of small and medium-scale firms in the sea of the world's economic powers....
10 Pages (2500 words) Essay

Small and Medium Enterprises (SMEs)

In this case, small and medium businesses have been seen as a perfect criterion in which new jobs are created.... Baldwin and Picot found that the net job creation in Canada by the small enterprises was more than those created by large enterprises.... It is very clear that SMEs play an important role in job creation and have arguably created more job chances than the large enterprises and this makes them very important in any economy (Ayyagari and Demirguc- Kunt, 2005)....
4 Pages (1000 words) Essay

Strategic Issue in Small and Medium Enterprises

The research paper "Strategic Issue in Small and Medium Enterprises" concentrates on whether they really are as flexible and adaptable as conventional wisdom would lead us to believe.... small companies are the envy of the business world since they manage to change their operations on the fly and can enter and exit markets with ease which is not available to larger companies.... n the other hand, there have been arguments against the wisdom that small companies are flexible and adaptable considering the number of SMEs which have been put out of business since many of them were based on trends....
10 Pages (2500 words) Research Paper

Small and Medium Enterprises in the USA

In the following paper “Small and Medium Enterprises in the USA” the author analyzes Small and Medium Enterprises which refers to those companies who have a headcount that falls below a certain level.... hellip; The author states that firms that deal with hand embroidery, rare paintings and stones etc usually involve a few people for workforce hence they are indisputably categorized as small.... The proper definition of a small firm hasn't been provided up to date....
10 Pages (2500 words) Dissertation
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us