SMEs (Small & Medium Size Enterprises) do not have a specific definition. They are defined in different ways according to individuals or organizations. In a general prospective; an SME is a small or medium business, company or organization that is usually established by one individual or two as partners. A business with small/medium scale revenue, small/medium facility and a small number of employees can be considered an SME (Baenol, 1994). SMEs are considered one of the essential economical developing factors in the 21st century. As the large cooperation expand, the need for SMEs has increased as well in order to provide small & medium scale services that are essential to make available for the financial growth opportunities for less capital
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These set of skills are essential to possess in order to account yourself as a businessman/women and guarantee a successful business start-up procedure.
In the pre-initiation procedure of establishing a small business, the business owner must consider a few fundamental business principles; potential customer, capital capacity, market nature, managerial capacity, rational risk taking, initiative spirit, adaptability to the market change and crisis management. These principles are the backbone of a successful and sustainable business.
Most importantly, technical business oriented skills are a key point of managing the business in the post-initiation process; business management skills, marketing skills, buying skills, costing skills, stock/inventory control skills, record keeping skills, business planning skills, negotiation skills and salesman skills.
In terms of business oriented knowledge, the entrepreneur should have good knowledge about products, services, customers, sellers, raw material, consumables, price, cost, cash sale, credit sales, sales income and profit (Doole et al., 2006; Chaston, 1998; Carson, …show more content…
Davidsson (1989) mentioned that a tax system that does not fall in the favor of the SME establisher, and complicated rules and regulations for registration can be an obstacle or slow down the growth of a small firm. Krasniqi (2007) noted that one of the major obstacles in developing countries is corruption which is the reason of the eruption of unfair competition. This is clearly reflected in the KRI as well. Many small business and firms face difficulty with the above two reasons; governmental regulations and unfair competition rising from corruption
These set of skills are essential to possess in order to account yourself as a businessman/women and guarantee a successful business start-up procedure.
In the pre-initiation procedure of establishing a small business, the business owner must consider a few fundamental business principles; potential customer, capital capacity, market nature, managerial capacity, rational risk taking, initiative spirit, adaptability to the market change and crisis management. These principles are the backbone of a successful and sustainable business.
Most importantly, technical business oriented skills are a key point of managing the business in the post-initiation process; business management skills, marketing skills, buying skills, costing skills, stock/inventory control skills, record keeping skills, business planning skills, negotiation skills and salesman skills.
In terms of business oriented knowledge, the entrepreneur should have good knowledge about products, services, customers, sellers, raw material, consumables, price, cost, cash sale, credit sales, sales income and profit (Doole et al., 2006; Chaston, 1998; Carson, …show more content…
Davidsson (1989) mentioned that a tax system that does not fall in the favor of the SME establisher, and complicated rules and regulations for registration can be an obstacle or slow down the growth of a small firm. Krasniqi (2007) noted that one of the major obstacles in developing countries is corruption which is the reason of the eruption of unfair competition. This is clearly reflected in the KRI as well. Many small business and firms face difficulty with the above two reasons; governmental regulations and unfair competition rising from corruption