Sme Sector In South Arica

CHAPTER 2 AN OVERVIEW OF SME SECTOR IN southwest AFRICA 2.1 INTRODUCTION 2.2 Nature of SMEs Researchers and scholars have failed to crook up with a universally accepted definition of SMEs. A deed of countries define SMEs establish on the characteristics of the market in which the enterprise operates which has led to nigh countries defining SMEs based on the level of economic maturement (Analoui and Al-Madhoun, 2006:2). The undermentioned section highlights on the major characteristics of SMEs: Characteristics of SMEs Pandey, Prasad and Shivesh (2007:2) identify the following characteristics in SMEs: ?Born by of individual initiatives &skills ?Greater operable flexibility ?Low cost of production ? higher(prenominal) appetency to adapt technology ? eminent talent to innovate & export ?High vocation orientation ?Utilization of locally lendable human & visible resources ?reducing of regional imbalances There nuclear number 18 some other features which atomic number 18 essential for SMEs besides the above mentioned for instance, contribution towards growth fellowship servant product, providing a nationwide pool of skilled and adept manpower and enhancing social life sentence in the country.

The characteristics differ jibe to dissimilar countries though a number of common elements atomic number 18 identified such as number of employees, employee turnover and assets. found on these facts, there is collect to define SMEs comprehensively in legal injury of external and South African perspectives. The outside(a) Perspective The European league missionary station defines SMEs based on tierce major components which are the number of employees, the firms turnover and the balance sheet. As from 1 January 2005, the Union classified SMEs if the quantity stated in the add-in which follows is met (European Commission opening move and Industry, 2005); Enterprise category passing CountTurnoverBalance Sheet middling sized little than or live to 250Less than or capable to 50 one million million poundsLess than or equal to 43 million pounds SmallLess than or to...If you want to get a full essay, order it on our website: Ordercustompaper.com

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