SMEs form a crucial part of the economical drivers. Not only do these create employment opportunities and add to the economic growth, but also have great potential for innovation and competition. However, when compared to the bigger enterprises the resources are not as easily available for sustained growth for SMEs.
What are the problems faced by SMEs which the larger corporations do not have to give much thought to?
Bigger and established corporations have the capacity to direct resources and employ a workforce solely for innovation and better productivity.
· Better Remuneration
· Good overall productivity
· Scope to add product lines making it into a comprehensive range of related products
· Capacity to incorporate newer technologies
A smaller enterprise, and smaller workforce, will typically lead to lower levels of productivity. Smaller workforces can also mean a skill shortage and lack of knowledge both at managerial and workforce level. Adhering to complex rules and regulations can be a tough task for SMEs, as well as difficulties in accessing the appropriate infrastructure.
An inability to invest in training and equipment, offer higher wages and provide better working conditions are some of the things that may stand in the way of SMEs increasing their productivity and quality. These things come with significant costs, which brings us to the most important issue of all: shortage of funds.
In spite of the challenges faced by SMEs, there are always ways in which they can seek help to accelerate growth. Financial support is an important aspect which helps SMEs grow. Support offered by some of the non-banking institutions goes beyond only monetary help. They also help on several levels, be it managerial or product advice. SMEs being one of the crucial driving forces towards economic growth, there are several government grants also made available to help support SMEs. If you are an SME in need of any kind of support, do your homework about these institutions and the help they can provide.
For any business financial support in Portsmouth, UK
get in touch with us. We might be able to help you in more ways than one.