Characteristics and advantages of small and medium enterprises

These industries have a significant role in building the national economy, and their importance appears through the exploitation of energies and capabilities and the development of expertise and skills, as they are considered one of the most important tributaries of the development process. In spite of the controversy over the age or modernity of small and medium industries, Establishing companies in Dubai


Its owner started working on a single sewing niche at the entrance to his building, and he used to collect the remaining fabric from the factory and weave it into ready-made clothes.

And the development and expansion of these projects reached, and they are also new in terms of their acquisition of the greatest interest on the part of those interested in economic, social and development issues, and despite this disparity in the order of priority enjoyed by small and medium industries, they acquire certain characteristics that distinguish them from others. From industries, they are as follows:

1. The owner of the facility is its manager, as he takes over the administrative and technical operations, and this characteristic is prevalent for these projects, as they are of a family character in most cases. Business setup consultant in Dubai

2. The decrease in the absolute size of the capital required for the establishment of small enterprises in light of the low volume of savings for these investors in small and medium enterprises.

3. Dependence on primary local resources, which contributes to lowering the production cost and thus leads to lower levels of capital / labor factor.

4. Appropriateness of ownership patterns in terms of the size of capital and its suitability for the owners of these projects, as the low capital increases the demand for those characterized by low savings on such projects due to their low cost compared to large projects.

5. Its own abilities to develop and expand due to neglect of aspects of research and development and lack of conviction of its importance and necessity.

6. Raise the levels of saving and investment, considering that they are a good source of private savings and capital mobilization.

7. Flexibility and ability to spread due to its ability to adapt to various circumstances on the one hand, which leads to achieving a balance in the development process.

8. Complementary industries: Subcontractors for large industries as well as supplying them.

9. Difficulty in marketing and distribution operations, given the high cost of these operations, and their inability to bear such costs.

10. The lack of an administrative structure, as it is managed by one person responsible administratively, financially and technically.

11. The cost of creating job opportunities is low compared to its cost in large industries.

It is noted from the foregoing that the characteristics of small and medium enterprises, some of which are negative and some that are positive, but the negative aspects in these projects do not refer directly to them as much as they are related to the problems they face Companies establishment

As for what must be emphasized here, it is that small and medium enterprises can continue for a long time without achieving profits, but they quickly collapse when faced with a critical financial payment that cannot be postponed, and therefore the direct cash flows for such projects are more important than the size of profit or investment returns.

It is customary to measure the role of small and medium enterprises and their contribution to the economy through three main criteria: contribution to employment, production and their share of the total number of establishments in the economy. The most important advantages of these facilities are as follows:

1. Small and medium enterprises provide a potential and effective source of competition for large firms and limit their ability to control prices.

2. These establishments are the main source of job creation in both developed and developing economies.

3. These facilities are the basic seeds for large projects, for example Benetton, Panasonic. 4. These projects are characterized by providing a suitable work environment where the project owner and workers work side by side for their common interest.

5. This type of project helps in developing regions that are less fortunate in growth and development, low income levels, and high unemployment rates.

6. These projects are considered fertile fields for developing new creativity and ideas.

The obstacles and problems facing small and medium enterprises:

The growth and development of the small and medium enterprises sector in all parts of the world faces a set of problems, and these may be different from one region to another and from one sector to another, but there are some problems that are unified or recognized problems facing small and medium enterprises in all parts of the world.

The nature of the problems encountered by small and medium enterprises are intertwined with each other.

In general, part of these problems are internal, which are the problems that occur within the institution or because of its owner, while they are considered external problems if they occur due to the action and influence of external factors or the environment surrounding these facilities. Through a review of the literature and previous studies in this regard, it was possible to summarize the most important problems facing small and medium enterprises and in general in all parts of the world:

1. The cost of capital: This problem is directly reflected on the profitability of these projects through the demand from small and medium enterprises to pay a high interest rate compared to the price paid by large enterprises. In addition, small and medium enterprises depend on borrowing from banks, which leads to an increase in their costs.

2. Inflation: in terms of its impact on the rise in the prices of raw materials and the cost of labor, which will inevitably lead to higher operating costs. Here, these establishments face a major problem, which is their confrontation with competition from large projects, which prevents them and limits their ability to raise prices to avoid the impact of high labor wages and the prices of raw materials.

3. Financing: Small and medium enterprises face financing difficulties because of their size (lack of collateral) and because of their novelty (lack of credit record).



ما مدى أهمية الأعمال التجارية الصغيرة للاقتصادات المحلية؟
أعمال صغيرة

مزايا وعيوب الأعمال الخيرية للشركات
كيف تؤثر السوبر بولز على الأعمال؟
تأثير دوران الرواتب على الاقتصاد المحلي
أفكار لجمع التبرعات غير الربحية
إن أهمية الأعمال الصغيرة للمجتمعات المحلية متجذرة عاطفياً في الشراء والبيع مع الأصدقاء والجيران. تظهر أهمية الشركات الصغيرة في المناطق الريفية والمدن الكبرى أيضًا في الفوائد الاقتصادية للتسوق محليًا. في بعض المدن والقرى ، الأعمال التجارية الصغيرة هي النوع الوحيد الذي يمكنه البقاء على قيد الحياة أثناء خدمة عدد أقل من السكان. في المدن الكبيرة ، غالبًا ما تقدم الشركات الصغيرة مخزونًا أكثر تنوعًا أو تتخصص في تقديم تجارب عملاء فريدة أو مخصصة. تقدم الشركات الصغيرة أيضًا فرص عمل جديدة وتعمل بمثابة اللبنات الأساسية لأكبر الشركات في الولايات المتحدة.

تنمية الأعمال الصغيرة في الولايات المتحدة
يتم تعريف الأعمال التجارية الصغيرة على أنها شركة (شركة أو شركة ذات مسؤولية محدودة أو ملكية) تضم 500 موظف أو أقل. وفقًا لإدارة الأعمال الصغيرة الأمريكية (SBA) ، تمثل الشركات الصغيرة 99.9 في المائة من جميع الشركات الأمريكية. خلقت الشركات الصغيرة 1.9 مليون وظيفة في عام 2015 مع بعض أصغر الشركات - تلك التي تضم 20 موظفًا أو أقل - أضافت أكثر من نصف الوظائف بزيادة 1.1 مليون. اعتبارًا من عام 2018 ، تشير تقديرات SBA إلى وجود 30.2 مليون شركة صغيرة توظف ما مجموعه 58.9 مليون عامل.