Strategy deployment for small and medium enterprises. Our own experience within smes shows an inconsistent or incomplete approach to strategy planning in the sme sector. The major growth strategies adopted by small and medium. In addition to strategic marketing for the sme, he is the coauthor of two business. The impact of strategic management on the growth of smes thesis centria university of applied sciences international business administration. So when the ceo and other sme stakeholders plan for growth, they almost always default to what they know best. One process sensing, i ntuition, feeling, thinking must be develo ped by a b usiness manager. Questionnaire on small and medium enterprises smes chapter one introduction a.
Statement of general problem small and medium enterprises smes in nigeria have not performed creditably well and hence have not played the expected vital and vibrant role in the economic growth and development of nigeria. Challenges and winning strategies page 5 canadian smes and growth. Establishing the factors affecting the growth of small and mediumsized enterprises in algeria. Sme strategy launched by european commission shaping europe. When asked about past 3 years sales growth, the mean annual rate was 3. Small and mediumsized enterprises smes are important agents of development throughout the world. Through the use of independent and external resources to champion a new vision for smes, mobec has made a stout statement to drive this transformation process with strong leadership and governance. Sme growth determinants several studies have focused on factors that foster the growth of smes. Growth strategies of sme in oman issues and challenges badriya hilal said al bulushi.
Financial system strategy 2020 fss 2020 international conference sme. Thus, the need for a study to look at taxation and its effects on smes sector growth and determines whether it is the root cause of the above scenario i. How many canadian smes are pursuing growth in canada in 2015. Exploring the riskbenefit of strategic management approaches. In all economies they constitute the vast majority of business establishments. Determinants of growth of smes in kenya 8250 words.
He holds degrees in economics and communications from the. It adds significantly to new economic growth, and is a major source of. Strategy considers establishment of monitoring and evaluation mechanisms. Strategic management for small and medium enterprises by chiew ming chak, mba. Growing the global economy through smes edinburgh group. Public disclosure authorized and employment effects. Smes has hampered crosscountry analyses of smes, growth, and poverty. Sme development strategy is elaborated in close cooperation with oecd and giz support. Growth strategies organic growth v inorganic growth growth measured in terms of increased revenue, profits or assets. The industrial strategy stresses the role of smes for a competitive and innovative european industry.
This research project was a study on the various growth strategies adopted by small and medium enterprises with specific focus to oyugis town. Small and medium enterprises smes have been recognized as important contributors in the economy of many countries and new opportunities are opening for. An sme strategy for a sustainable and digital europe. It is essential to give meaning to this type of project, for all levels of the. Financing of productive capacity is central to any development strategy, but access to finance. Challenges and winning strategies page 6 revenue, profit and jobs are the three dimensions most often cited when determining to what degree an sme is growing. Improving the competitiveness of smes through enhancing. Most is research focuses on large firms, yet the majority of firms in most economies are smes. Determinants of growth of smes in kenya thesis proposal sample. Consequently, the growth of the sme sector directly affects the performance of the nation. Business strategy in international small and mediumsized. A growth strategy based on product development is the mirror image of a market development. Eastern europe and south caucasus armenia, azerbaijan, belarus, georgia, the republic of moldova and.
A case of kisumu county samuel odongo anyanga1, micah odhiambo nyamita2, 1school of business, department of business administration, university of nairobi, nairobi, kenya 2finance and accounting, school of business and public management, kca university, kisumu, kenya. Promoting a countrys sme sector plays a crucial role in maintaining high employment and income generation and is therefore critical for achieving sustainable growth. The analysis finds that while there is a large amount of empirical evidence on the effects of sme growth on jobs, there is limited evidence of sme financing interventions at the. Strategy deployment for small and medium e n terprises glenn h. Grant, 1991 figure 1 describes the success strategies which when effectively implemented enhance growth. Sme small and medium size enterprise swot strength, weaknesses, opportunities and threats. It is easier to investigate the antecedent factors that affect growth and the consequences of growth leitch et al. Market penetration as a growth strategy for small and mediumsized enterprises in nigeria. The impact of strategic management on the growth of smes. Through the use of independent and external resources to champion a new vision for smes, mobec has made a stout. Strategy implementation framework used by smes in zimbabwe. In this regard the government has been calling for support towards the small to mediumsized enterprises smes, which is an acknowledgement of the potential benefits it can.
And what are the most commonly used strategies for. The sme sector in georgia and the need for an sme strategy in recent years, georgia has made significant progress in improving its business environment. Sme strategy launched by european commission shaping. Ministry of industrialisation, trade and sme development mitsmed supported by.
Overview of the economy and government priorities 1. Growth strategies for exporting smes enterprise ireland. A case study of markmann and company limited by asha ndope a research project report submitted to the chandaria school of business in partial fulfillment of the requirement for the degree of master of business administration mba united states international universityafrica summer 2016. The analysis finds that while there is a large amount of empirical evidence on the effects of sme growth on jobs, there is limited evidence of sme financing interventions at the sector or firm level on job creation.
Vision what we see the organization becoming at some future point. Establishing the factors affecting the growth of small and mediumsized enterprises in algeria asma benzazoua bouazza1 phd scholar, school of management shanghai university building v905 shang baoshan district shanghai p. Last year, under the direction of louis jacques filion, hec montreals centre for productivity and. Growth strategies why inorganic growth external industry and economic factors play a crucial role slowing industry growth rate, fragmented industry and too many competitors fighting for the same market share an economic slump creates opportunities for cash rich companies to get hold of unutilised. China diabate ardjouman phd scholar school of management shanghai university shanghai city, china dr. In addition to strategic marketing for the sme, he is the coauthor of two business books with a.
The eu sme strategy for a sustainable and digital europe. Red tape, corruption, complex entry regulations etc. Challenges and winning strategies october 2015 bdc study. Financing technology, held from 28 to 30 october 2002 in geneva, sought to identify possible innovative ways for financing smes.
Common element of successful strategies adapted from robert s. Internationalisation is one of the most complex strategies that any firm can undertake. A company that implements this type of strategy usually merges or acquires in the same production stage. In the region, smes are severely hampered by a weakly developed business environment. There are few studies of the growth of established smes. As growth entails risk, especially in a dynamic economy, a growth strategy might be described as a safest policy of growthmaximising gains and minimising risk and. The diagram below gives an understanding of the above four factors of successful strategy. Growth strategy for the namibian wood charcoal industry. Pdf strategic role of internet in smes growth strategies. The main barriers to growth were finance availability, talent acquisition and retention and hyper competition.
Sme in todays economy is to do more for their custo m ers, to do it faster, and to do it more cost effectively. This study used a pluralist methodology with the participant action research as a primary approach, case study as a design and mixmethod strategy to collect and analyse data. An empirical perspective of smes in the cape coast metropolis, ghana moses ahomka yeboah, cape coast polytechnic, ghana article pdf available january 2015 with. The owner is the business, performs all the important tasks, and is the major supplier of energy, direction, and. Establishing the factors affecting the growth of small and. Due to the reforms being implemented by the gog, the economy has both diversified and achieved high rates of economic growth. Consequently, the growth of the sme sector directly affects the performance of. Pdf strategic management and small and medium enterprises. This has helped attract foreign direct investment, expand export activities and achieve sustained economic growth. Mar 11, 2020 the eu sme strategy for a sustainable and digital europe. A better understanding of the business strategies and growth models of such firms will enlarge knowledge in management theories and enable smes practitioners to influence business growth. Smes have played and continue to play significant roles in the growth, development and industrialization of many economies the world over.
Without effective implementation, the bestlaid strategy is of little use. This paper will propose a model for formulating strategies that is aimed at business growth for small and medium sized enterprises smes. Nevertheless, a substantial amount of work has been done to assess the roles that smes play in driving gross domestic product gdp growth and sustaining employment. The outlook consensus for the next 3 years was stable or cautious growth. Our sme measure is the share of the manufacturing labor force in firms with 250 or fewer employees in. Growth strategies are never pursued in a vacuum, and being willing to change course in response to feedback from the market is as important as. The major growth strategies adopted by small and medium enterprises in kenya. Pdf market penetration as a growth strategy for small. Is it smarter to drive additional profitability through rapid expansion or by slower but more assured organic growth. The expert meeting on improving the competitiveness of smes through enhancing productive capacity. Sme owners need to manage growth, survival and succession alongside everyday issues facing.
Clearly, sme owners need to manage growth, survival and succession. Growth strategy for the namibian wood charcoal industry and. The major growth strategy the enterprises adopted is product. Sme in making the city the number one place in the world to start, grow and expand their smes into global enterprises. Business development bank of canada smes and growth.
Strategic planning guides effective strategymaking through coordination and shared purpose. The entrepreneurs interviewed for our survey and the other sources consulted all view growth from one or more of these perspectives. Third, we identify the most important obstacles to sme growth in subsaharan africa. Small and medium enterprises smes make important contributions to economic and social development of any country. Establishing the factors affecting the growth of small and mediumsized enterprises in algeria asma benzazoua bouazza1 phd scholar, school of management.
Capacitybuilding and support for the transition to sustainability and. Model for developing strategies specific to sme business growth. Sme that are larger than micro companies, and either part of or heading towards the formal economy. A strategy is an overriding purpose that can align and mobilize all. Strategies for growth in smes explores for the first time the role of information and information systems is concepts in small and mediumsized enterprises smes. By and large, the usual framework of analysis, choice and implementation of strategy was followed. As growth entails risk, especially in a dynamic economy, a growth strategy might be described as a safest policy of growth maximising gains and minimising risk and. This paper provides the first crosscountry evidence on the links between smes and economic growth and poverty alleviation using a newly built database on smes.
Prior studies have a significant contribution in exploring aggregate sme growth phenomena, but there is a little understanding of how smes grow in the recessionary periods. The study presented in this paper analyzes the factors influencing the growth rate of small and mediumsized enterprises smes in algeria and explores the extent to which their success or failure depends on the wider. Thus, sme development strategy must be integrated in the broader national development strategy andor poverty reduction and growth strategy of transition and developing countries. Public disclosure authorized and employment effects targeted. Sme managers is to create an environment that enables success. Pdf due to increasing competition through internet, it has been difficult for smes to control their development path under this situation it is. A growth strategy is one under which management plans to advance further and achieve growth of the enterprise, in fields of manufacturing, marketing, financial resources etc. Financial system strategy 2020 central bank of nigeria.
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