Abbreviation "SMEs" means small and medium-sized businesses enterprises. The exact technical definition SMEs vary from country to country. In the United States, the size of the Small Business Administration Standards Office sets the definition of small and medium industries. The term "size standards" is used to specify the maximum size of the organization can reach and still be considered a small business or medium-sized businesses.
Definition Of SMEs
Specific recommendations vary for different industries. General guidelines, which should be no more than 500 employees, in the case of the production / extraction of minerals; for the wholesale trade enterprises, the number is 100. Retail trade and services should not be more than $ 7 million in revenue; for general industry and construction, the maximum annual income can be $ 33.5 million. Special trade contractors whose income is less than $ 14 million classified as small and medium-sized businesses, while the agricultural sector should not be less than $ 750,000 in income to qualify for the label of small and medium-sized businesses.
Lower Capital, Governmental Aid
SMEs does not require huge amounts of capital. Moreover, entrepreneurs who want to start a small business or medium can receive financial assistance and support from the various organizations, government networks and plans - such as those offered in the United States Small Business Administration. This financial assistance can contribute to the creation of a new range business financing to make sustainable business, or even a natural disaster recovery.
Adaptability to Trends
Due to its small size, small or medium enterprise can adapt to easier market trends, or changes in demand. Large organizations will need more planning, more efficient input and better organization. In the case of larger companies, their size becomes a disadvantage, reducing their flexibility.
Running a small business is often easier than running a larger size. A person who runs a small business should not be delegated to several people; Thus, it is easier for him to get an overall picture of the company, and it will help you in making decisions. Small businesses tend to be more efficient and productive, because they can not afford to waste resources.
This is not only thing the best advantages of SMEs for Myanmar SMEs, but if you use with these things that you will be well on your way to success.