Influences in establishing an SME (SME'S)

Question 1

characteristics of an SME

Answer 1

• personalised service
• independently owned
• closely controlled by owner/opperator
• not dominant in the industry (that is a small share of the total industry)
• owner basically responsible for decision
• locally based

Question 1

what are SME’s

Answer 1

SME’s can be defined as having between 5-200 employees

Question 2

What is the role of SME’s

Answer 2

to provide a wide range of products used by large businesses

earn more profits and pay more taxes than large businesses

Question 3

state micro, small, medium and large

Answer 3

Micro = fewer than 5 employees including the owner

Small = from 6 - 19 employees

Medium = 20 - 200

Large = 200+

Question 4

What are the economic contributions of an SME?

Answer 4

• they employ around 8 million people
• around 40% of SMEs are actively involved in some form of innovation

Question 5

what makes an SME successful

Answer 5

• they focus on market niche
• they can concentrate their efforts on a few key customers or a specific segment of the market.

Question 6

What leads to SME failure?

Answer 6

• partnership problems
• economic turndown
• not enough sales
• new taxes