Characteristics Of SMEs

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Characteristics Of SMEs

The term used by SMEs in the European Union and other international organizations to refer to small and medium enterprises – companies that have a limited number of employees is determined. The United States often use the term SMB, for small to medium business. Classification as an SME based on the number of employees, as a rule, from 10 to 250 to 500, depending on the country where the business is set up. All small and medium-sized enterprises have common features, regardless of the industry and local markets.

Dependence on Few Employees

Many myanmar SMEs companies are quite small and have only a few employees. This is a limited time to perform all the necessary tasks, such as innovation, manufacturing, marketing, sales and accounting for all business-required personnel; for example, a business owner can also be a manager, who oversees all aspects of the company. This can be a disadvantage if the workers do not have the necessary skill sets to perform several tasks well; Nevertheless, this type of business structure contributes to the long-term stability, rather than concentrating on short-term results.

Relationships

Most small and medium-sized enterprises concentrated in a small number of products and services; This limited approach allows these companies to establish strong relationships with its business partners, which in turn, provides stability for small and medium-sized businesses. Small and medium-sized businesses, as a rule, makes the necessary changes to their services or products that are tailored to customers’ needs; The downside of this is that SMEs are mainly based on existing partnerships and may suffer financially if the relationship ends.

Simplicity

Small and medium business is a simple business structure that allows us to be very flexible and make the necessary changes quickly and without requirements such as address or boardmembers shareholders for approval. This flexibility, however, does not necessarily mean that the company is in compliance with local and national regulations advice or legal team of a larger organization to consider before putting the changes into place.

Size

The small size of the company can be an advantage when it comes to specialization and fill niche markets with products. However, size can be a disadvantage when it comes to obtaining financing for the business. Many SMEs based on the personal assets of the owners and management to finance companies. Resource limitations also affect the marketing and the ability to enter new markets with their products, due to budgetary constraints.

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