Such cases are thus less frequent than and very different from the two preceding type.
Importance of SMEs
Small and Medium-Sized Enterprises have become the lifeblood of today's global economy. Moreover, they are the fastest growing segment of major national economies. Small and medium-scale enterprises have become universally important due to their ability to adjust quickly to the vagaries and vicissitudes of the economy, fluctuations of the markets, and financial crises. They promote diversification of economic activities, support sustainable development and make a significant contribution to exports and trade.
SMEs are major employment generators, surpassing larger firms in net job creation. In the European Union alone, smaller firms provide employment for more than 70 million people, representing two-thirds of all EU employment. There are also an estimated 75 million SME worldwide which represent about 99% of all companies.
Problems in SMEs
The main constraints faced by SMEs are lack of management and marketing skills. While most owner-managers and start-up entrepreneurs are experts in their product and service, but often lack of wider managerial skills hinder their long-term success. Strategic planning, medium-term vision, marketing, finding customers, patient "not to get rich overnight," management of innovation, commitment to quality and knowledge of quality systems, knowledge of foreign languages, cash-flow management, information technology, just to mention a few, which are all critical elements of management required to meet challenges of the market economy, especially in the international market environment.
SMEs generally do not have the same...
The ability of small businesses to survive in the globalize market deeply depends on the existence and availability of relevant information they require for their decision-making.
References
Ercel, G. (2000) Globalization -- the continuing process of economic integration [Online]. [Accessed 24th June 2005]. Available from World Wide Web: http://www.tcmb.gov.tr/yeni/evds/konusma/ing/2000/Smse.html
Kilgore, K. (1998) SME's (Small to Medium-sized Enterprises) - Graduates for Growth [Online]. [Accessed 24th June 2005]. Available from World Wide Web: http://www.pierhead.zetnet.co.uk/gfgtest/smes.htm
Adapt [Online]. [Accessed 23rd June 2005]. Available from World Wide Web: http://europa.eu.int/comm/employment_social/esf/en/public/adapt/en/part1.htm
Commission adopts a new definition of micro, small and medium sized enterprises in Europe (2003) [Online]. [Accessed 23rd June 2005]. Available from World Wide Web: http://www.eurexcel.org/sme_definition.pdf
EUROPA - Enterprise - Definition of small and medium-sized enterprises (2002) [Online]. [Accessed 23rd June 2005]. Available from World Wide Web: http://mail.smallbusinesseurope.org/Issues/Archive/SME%20Definition/1033051918/Revised_ECrecommendation
Sizing up Global Opportunity (2004) [Online]. [Accessed 23rd June 2005]. Available from World Wide Web: http://www.microsoft.com/businesssolutions/global_opportunities.mspx
