Small and Medium Enterprises play a vital role in today’s economy. They provide employment opportunities, utilize local resources, aid in the industrialization of rural areas and contribute heavily to the nation’s GDP and exports. The growth and development of SMEs is important not only to the enterprises themselves but also to the nation as a whole. Businesses today need to be aware of the various factors that could limit their growth, so that they can face challenges head-on. This article aims to outline the main problems faced specifically by SMEs, some of these issues will be further addressed in articles to come.
SMEs need to be able to obtain and organize cash in order to thrive. Access to timely, adequate credit is not always available and existing cash and information needs to be properly structured.
Marketing & Business Development
To successfully market their goods and services, SMEs need to be able to connect with target customers, which requires market awareness and innovation. New customer acquisition and portfolio management can also be tricky but is an essential part of a successful marketing strategy for business.
A business’ development depends on skilled human resource. Finding the required expertise at an affordable cost is challenging and existing talent needs to be managed effectively.
An important aspect of strategy development is adopting new technology. This will enable enterprises to enhance the quality of finished goods and boost productivity. They need to find the right tools that meet their specific needs, and know when and how much to invest in them.
Organization and Operations
Suitable supply chains, vendor management, practical infrastructures and optimization of operational costs are necessary for the success of a business. These have direct implications on profit margins, production capacity and productivity levels.