Small or Medium-Sized Enterprise (SME) Essay - 1817 Words

BACKGROUND Small or medium-sized enterprise (SME), of which definition varies in different countries and different economic development levels, normally is known as relatively small business unit in terms of employees, capital and operations scale in compared with large enterprises in the same industry. In spite of the diversity of its definition, SME plays a crucial role in almost every economy, tremendously contributes to economic development, job creation, and social stability. According to Popa (2012), it becomes a common place to speak of SMEs as an engine of economic growth for any European Union country. Actually, the saying is not only limited with European Union country, but also works in almost every country, the data from the†¦show more content†¦Financing difficulties has become a common saying of SMEs. The bottle neck of the development of SMEs can easily lead to the instability of the main structure of the economy. Therefore, the financing sources for SMEs and the difficulties they face becomes an internationally concern ranging from developing and developed economies that draws close attention from researchers and policy makers around the globe, numerous studies have been conducted in research areas, and a variety of policies supporting financing measures for SMEs have been taken in different countries. TYPES OF FINANCING Currently the main financing sources for SME are bank loans, share holder capital increasing, shareholding transferring, listing in SMEs market, leasing and individual debt. Besides the commonly known financing sources, the one-line financing is a newly-born micro financing type that works in an online platform, on which studies hardly have been conducted. The modern on-line financing borrowers and lenders seek and match each other through the internet platform, which differs from the traditional meaning that financial institutions launches finance through internet, such as stock. The borrowers publish its projects on the intermediary website platform, which have been audited by the intermediate platform, the money savers (lenders) search the appropriate project to invest, all of the business transactions happen on-line. Many money savers are attracted by the tempting high interestShow MoreRelatedIntroduction Of A Small Medium Sized Enterprise ( Sme )1900 Words   |  8 PagesAvailable Sources For SMEs Introduction It is well known that the economic base decides the superstructure. As an essential part of economy which contributes to the growth of industry as well as creates jobs for citizens, small to medium sized enterprise(SME) plays an irreplaceable role in both developed and developing countries(Angela,2011). Although SME has its own important value, not every enterprise can improve its business and be profitable. There is a need for SME to develop a funding strategyRead MoreEconomic Development And Development Of Small And Medium Sized Enterprises ( Smes )2194 Words   |  9 Pageswhere countries compete extensively, shaping the market towards dynamism, the government began to realise and acknowledge the vital existence of small and medium sized enterprises (SMEs) to maintain a healthy dynamic market economy. In 1911, Joseph Schumpeter, an influential economist, published In the Theory of Economic Development and highlighted that small entrepreneurial firms act as the seedbed of innovati on and technology discovery, however in Capitalism, Socailism and Democracy, published byRead MoreSmall and Medium Sized Scale Enterprise (SMEs) Finance Sources and Difficulties1935 Words   |  8 Pages1.Introduction Small and medium sized scale enterprise ( SMEs ) occupies the crucial position among the worldwide economic activities, particularly in developing country, whose flourish has already became a sign of the rapid development of economy. However, more than half SMEs face the severe challenges of surviving. Among all the possible threats during business activities, inadequate access to capital is the most important factor to determine the enterprise’s destiny (CCH, Australia, 2013). EvenRead MoreFlexible Working1445 Words   |  6 PagesModule Code: FC512 Class/Group: Group 3 Module Title: Skills for Study Assessment Title: Report Assignment Title: Analysing the feasibility of SMEs in the UK introducing flexibile working arrangements. Tutor Name: Debora Brito Student ID Number: 2253710 Date of Submission: Monday 9th May 2016 before 2 pm Content Read MoreChallenges of Small and Medium Enterprises in Kenya1728 Words   |  7 PagesSMALL AND MEDIUM-SIZED ENTERPRISES SME stands for small and medium-sized enterprises – as defined in EU law: The main factors determining whether a company is an SME are: 1. Number of employees, and 2. Either turnover or balance sheet total | |Employees |Turnover |or |Balance sheet total | |Company  category | | | | | |Medium-sized | 250 Read MoreImpact Of Small And Medium Sized Businesses On Jobs And The Economy1602 Words   |  7 PagesRunning head: SMEs​ 1 The Impact of Small and Medium Sized Businesses on Jobs and the Economy Name: Institution: Outline 1. Introduction Introduces the discussion and gives a thesis statement 2. Discussion Explores the contribution of SMEs to the economy, gives detailed statistics from various academic sources. It also offers an explanation of the impact of the 2008 financial crisis to the SMEs contribution to the economy in regards to employment 3. Conclusion Wraps up theRead MoreSme Sectors Benefits to the Economy1713 Words   |  7 PagesThe SME sector is said to make a significant contribution to employment; evaluate this claim by drawing on the literature, and discuss what other contributions are made to the economy by the SME sector. Gov website says that for the purposes of SME 2006 statistics an SME is defined as any business that has less than 250 employees. SME: small and medium-sized enterprises are defined by the European Commission as independent enterprises that have fewer than 250 employees, and an annual turnover notRead MoreReview Of Government Spending On Target Market985 Words   |  4 Pages1.1.1. Government Spending on Target Market According to the Government spending with small and medium-sized enterprises report (referenced below) by House of Commons Committee of Public Accounts, the United Kingdom government is putting conscious efforts to make the public-sector marketplace more accessible for SME’s. Government spending with small and medium-sized enterprises by House of Commons Committee of Public Accounts on 18 May 2016. Retrieved 12 August 2017 from https://publications.parliamentRead MoreBusiness Management : The Financial Manager Essay1277 Words   |  6 Pagesreturn to the enterprise owner(s). 3) Dividend Policy: The financial manager is responsible for deciding the dividend policy of the enterprise. In a small scale enterprise, the responsibility of the financial manager would include that of determining how to allocate the profit from the to the various owner. 4) Working Capital Management: It is especially around the management of cash, debtor, prepayments, stocks, creditors, short term loans, accruals, etc to make sure that enterprise maximizes theRead MoreRole Of Coaching And A Medium Sized Enterprises ( Smes )862 Words   |  4 Pages1.1 Background Small and medium-sized enterprises (SMEs) are influential in sustaining strong economic growth of many countries around the world (Craig et al., 2004, Jasra et al., 2011, Ates et al., 2013). Unfortunately, most SMEs have a problem of time and financial investment into HRD (Samra, 2010). Coaching is one of the HRD fields that is among the most widely used interventions for improving learning process as a key element in the success of individuals and organisations (Ellinger et al.,