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Showing posts with the label small business management

Strengths and Weaknesses of Small & Medium Businesses on the Global Supply Chain

Moving products from one area of the globe to another in an efficient manner is difficult. Ensure that inventory is accurate and supplies arrive when needed is also difficult. Small and medium size enterprises (SMEs) often lack the competence and skill to manage their supply chains well.   A study Dr. by Mohd Rahman discusses some of the challenges in supply chain management (SCM) faced by small businesses in Malaysia.  A few decades ago Malaysia was an agricultural center but grew to prominence in the business world.   In 2005, approximately 29.6% of all companies were geared toward manufacturing exports. SME’s are 92% of registered companies and constitute 90% of manufacturing companies that contribute to 65% of employment. SMEs within Malaysia provide a strong case study of the difficulties SMEs have with SCM. SMEs are often a strong catalyst for growth when they can effectively obtain resources and convert those resources to export products. Despite their benefits, man

Recession Busting Small Firms: A Study on Successful Small Business Management

Small businesses are one of the first organizational entities that sink during a recession. The strength and innovative ability of a nation lies in the ability of smaller businesses to maintain profit margins and find new ways of adapting to poor market conditions. Research helps highlight how the legal form, management, and market exposure of such small businesses contributes to their success in overcoming recession related challenges.  The advantages of having small businesses within the market cannot be underestimated. They significantly contribute to employment, income generation, exporting of products/services, stimulators of competition and sources of innovation (Anderson & Tell, 2009). Without the success of small business states and nations would not have those innovative cushions that can recoup quickly and take advantage of market trends.  In many cases such businesses suffer from poor financial capital as well as ineffective management that lacks clear stra