SME's

Question 1

what are the measurements in defining SMEs

Answer 1

number of employees (≤199)
types of ownership and legal structure (sole trader, partnership[2-19], private company[up to 50])
sources of finance
market share (small)
management structure (flat)

Question 2

what are characteristics of SME’s

Answer 2

personalised service, local markets, independently owned and operated, reliant on internal support services, bulk of capital provided by owner

Question 3

how significant are SME’s (%)

Answer 3

SME’s account for 99.8% of all private sector businesses

Question 4

what is the role of smes

Answer 4

created many jobs, become more innovative and are increasingly entering overseas markets

Question 5

what is the economic contribution of smes

Answer 5

gpd, invention and innovation, balance of payments, employment

Question 6

define balance of payments BOP

Answer 6

a record of a country’s trade and financial transactions with the rest of the world over time, usually one year

Question 7

what are the keys to the success of an sme

Answer 7

flexibility, reputation, focus on market niche, entrepreneurial abilities, access to information

Question 8

at what point for a sme do they fail?

Answer 8

1.unincorporated and declared bankrupt
2.incorporated and either forced into liquidation or voluntary cessation