A Critical Evaluation And Analysis Of Two Small And Medium Enterprises

Small medium sized enterprises and small and medium sized businesses are often referred to as SMEs. These are companies whose number of employees or turnover falls underneath certain limits. The EU defines companies with fewer than 50 employees as small, and those

The Swedish business sector comprises a significant number of SME companies. Together they account for 59% of value added and 66% of employment. Micro-businesses constitute 94.6% of all companies. Most SMEs operate in services, wholesale trade and retail, and construction. There are relatively few Swedish small and medium enterprises in the

Small business enterprises form special economic component of a given country. As such the strategies should be put in place to ensure their proliferation and continued generation of profit to the owners and revenues to the government. Small businesses are also source of employment for most individuals who are unlucky to be employed by the multibillion corporate and other middle level companies and organizations. Management strategies are plans that are put in place by either government or the business owners to ensure that their businesses are being driven towards growth and enhanced profitability. The strategies put in place are usually well researched and organized in steps and stages that can easily be followed to ensure the development of the small firm and their continued existence. This paper will be looking at a small business firm, analyze its intellectual capital resources and come up with recommendations and proposals that will help to boost the total growth and profitability of that particular business firm. The paper will look at into the strategic intents of the business firm, document and designate the intellectual capital resources required by the business venture in order to grow. The competitive advantage position of the venture will be analyzed according to the resource based theory and give recommendations that will improve the chances of the successfulness of the identified small business firm

SME is a term defined in EU law (EU Recommendation 2003/361) with the definition of all three types of SMEs – micro, small and medium sized businesses defined by their level of turnover and number of employees. Micro businesses employ < 10 employees and turnover < 2 million Euro; small business have <50 employees and turnover < 10 million Euro and medium sized businesses have <250 employees and turnover < 50 million Euro. (European Commission 2013) None of the respondents said that they employed less than 10 people so there were no micro business participants in this survey.

This paper addresses the issues and current literature surrounding research into innovative marketing in small and medium sized businesses (SME’s). Micro and SME’s are collectively major contributors of jobs and account for 99% of enterprises in the EU (Nyman et al., 2006). It is also recognised that marketing is one of the most important business activities and is vital to the survival and growth of businesses (Simpson & Taylor, 2002). Therefore, a critical and detailed understanding of how SME’s operate within marketing is essential. While it is recognized that SME’s do partake in marketing, the form SME’s marketing takes is not fully understood (O’Donnell, 2004). However, what is understood is that SME’s do not perform

Many small and medium sized enterprises are involved with the manufacturing industry. They take a significant and crucial part in the growth of GDP by offering work opportunities, which help to release employment pressure. A large number of the SMEs are experiencing from the deficiency of IT related capabilities, i.e. development, operating management, research and coordination of the industrial chain.

​The term “SME” is commonly used to refer to Small and Medium-sized Enterprises. The term covers a variety of definitions as well as measures. However, in most of the various definitions of what is an SME, employment is the most widely used criterion for categorizing the size of the firm. Moreover, SMEs are often defined as businesses with fewer than 500 employees. However, a number of countries, including some in the European Union use a lower cutoff of 250 employees. SMEs are important in the economy because they have some unique benefits to the economy chief among these being employment and job creation among others. The following discussion explores the impact of SME to the economy, especially in regards to employment and the creation of jobs among others.

The European Commission states that “the criterion of the number of staff as the main criterion, however, introducing a financial criterion is nonetheless a necessary adjunct in order to grasp the real scale and performance of an enterprise and its position compared to its competitors” (European Commission: 2003, item 4). Figure 1.0 below is an illustration of SMEs definition by the European Commission.

Small and medium-sized enterprises (SMEs) are a key source of innovation and make a significant contribution to the economy of New Zealand in terms of employment, output and growth. There is no universally definition of an SME in New Zealand. However, from a government perspective, they are considered to be firms having the following traits: personal ownership and management, having few specialist managerial employees, and they are not part of a larger business organization. These traits are typically demonstrated by SMEs in New Zealand, so New Zealand politicians and business organizations are usually define SMEs as enterprises with 19 or fewer employees. According to report 2011, SMEs account for 31% of total employment, and contribute 40% total outputs (Ministry of Economic Development, 2011).

The intersection between globalization and local entrepreneurship, defined by specialists as “international entrepreneurship”, has started to receive more and more attention over the last two decades (Mathews and Zander, 2007, p. 395). Small and medium-sized enterprises (SMEs) play a significant role in the global economy and have a big impact on incomes, outputs, and the employment sector.

Small and medium enterprise(SME’s) in India have a very important place in the Indian economy. Their contribution in terms of production, export, export, employment generation and all round growth of the country is well known. The role of SME sector in the nation building is well recognized not only in India, but also across the globe. The industrial engines of Japan, china, US, Germany and Taiwan are also driven by the SME sector.

Micro, small and medium enterprises (MSMEs) encompass 99.6% of all registered business in the country and occupy 70% of the labor force (Department of Trade and Industry [DTI], 2010). This makes them an essential unit in the economical aspect of the country. Also, according to DTI, their major role entails the assistance for rural industrialization and growth, and creation of employment prospects and more reasonable returns allocation. MSME’s further contribute much idea, ability, and advancement needed to support competition and the efficient allocation of scarce resources.

In India, Micro, Small and Medium Enterprises (MSMEs), contribution to GDP exceeds 17% and over 40% to industrial production. MSMEs’ share of total exports is 40% and a large share of additional exports indirectly, through third parties, trading houses, etc. Traditionally, export sectors in which MSMEs operate in India have been Textiles and Garments, Leather products, Gems and jewelry and Handicrafts. MSMEs’ also have a large share of market in industrial goods segments like Electricals, Electronics, machine parts, plastics, etc.

It is widely known that small and medium scale enterprises play an important role on the vitality of local economies around the globe. SME's are to be

The importance of small and Micro Enterprises (SMEs) in the economy of any country cannot be overlooked. In fact for nearly 15 years, most researchers dealing with economic planning have highlighted the significance of these enterprises stating that they are a key player in realizing any country’s economic goals. As such, governments as well as other organizations with interest in development are laying plans and strategies to promote the establishment of Small and Micro Enterprises. This is seen as a move to ensure that there is full participation of SMEs in the country’s economy. The Small and Micro Enterprises have been known to contribute to a large extend as a source of innovation, entrepreneurial skills as well as source of employment. For example, statistics in 25countries of the European Union show that 99% of the jobs provided to its citizens come from the micro, small and medium-sized enterprises. Rowe (2008) points out that the British economy relies heavily on the participation of SMEs. On the other hand, 99% of the UK’s economy is composed of small and micro enterprises.