The Issues Facing Small Business

Of note, Olawale and Garwe’s (2010) literature review is without an introduction and a summary. Additionally, the organisation of the literature does not provide a convincing flow of analysis, for example after an introductory paragraph into the empirical literature, whose information seems to be skewed toward establishing the contribution of new SMEs towards the promotion of economic growth in South Africa and not in their growth themselves, the authors just jump into a new heading ‘The business environment’ without providing clear foresight of this intention. The Literature review was also supposed to highlight what has previous research find out in full and demonstrate an understanding of the variables in

Partnerships and networks between big and small companies will contribute to the success in the future (Delaney, 2009).

SME?s are defined in a variety of ways by various countries using such parameters such as a number of persons employed, capital invested, turnover or nature of the business etc?.not only different countries apply different definitions on the concept of SME?s even within countries, different regions and different institutions adopt varying definitions in this regard.

Small and medium-sized enterprises (SME’s) have proved to be the dynamo for the many economies of the world. SME helps in creating jobs, driving innovation, growth and economic diversification.

The study will also be valuable to business consultants and entrepreneurship trainers as they will help SMES increase quality along the supply

In view of the poverty situation in Bangladesh, the government’s major development objective is to create more employment in order to secure incomes and thereby reduce poverty. Because of the structure of small and medium enterprises (SMEs) in Bangladesh, which are mainly labor-intensive and the development of SMEs is considered to be the most effective contribution to the eradication of poverty.

One interesting finding related to the growth of SMEs and the required competencies is that of the Churchill and Lewis (1983), and Scott & Bruce (1987). In their search for the development of a

We realize that SME’s are crucial for UK economy, In first quarter of 2013 there were around 4.9 million businesses were private, among those 99.9 % were SME’s. Almost 44% of SME’s are using external finance; reportedly bigger SME’s are using more external finance.

A small business will employ less than 250 employees as it is a company that is independently owned and “is not dominant in its field of operation” (Bovée and Thill, 2008). There are three aspects: micro, small and medium. A microbusiness will have a turnover of less than or equal to £2 million and will employ between 1-9 employees (see appendix 2). On the other hand, a small business will have a turnover of less than or equal to £10 million and will employ from 10 – 49 employees and lastly a medium business will employ from 50-249 people and have a turnover of less than or equal to £50 million (BMG Research, 2013). Small businesses have been defined as such due to their annual revenue and/or number of employees which was defined by the SBA (U.S Small business administration).

Small Medium Enterprises “SMEs” is business or organization that usually starts in a home or small office, set of clients, depending on annual sales and funded by bank loans or

The collected data or information was categorized in groups, for example, the definition of SME was viewed within a global and regional. Various definitions were explored and analyzed for their interest and specificity to developing countries.

In all, small medium sized enterprises (SME), contribute to the economy in many ways and are essential for economic growth. This report will provide the typical information needed to become a successful entrepreneur and develop a successful business in the 21st century.

Beck, T. & Demirguc-Kunt, A. 2006, ‘Small and medium-size enterprises: Access to finance as a growth constraint’, Journal of Banking & Financ

According to Malaysian SME annual report (2005 & 2006), small business enterprises or known as SME have been recognized as the strategic thrust in Malaysian economy and is a very important segment of the Malaysian economy accounting for 99.2% of total business establishments. SME also providing employment for about 56% of the total workforce and contributing about 31% of gross domestic product. Small business enterprises can be grouped into three categories which is micro, small or medium enterprise. These grouping can be decided based on two aspects either the number of people a business employs or on the total sales or revenue generated by a business in a year.

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.