Business, Finance and Real Estate Blog

The world of small and medium enterprises (SMEs) is a field vaguely familiar to many people, especially for those who have responsibility for policy development support for the sector. There are myths that affect decisions of these people, however, there is an even more worrying is that some small business owners keep their own myths, the greatest of these is that they believe that their problems are caused by failure credit and sometimes even think it’s their only problem. Studies have shown that it is not, the problem lies mainly in poor management.

These same studies on SMEs frequently cited problems such as: declining sales, declining profitability, late payments from customers, among others. Only half of the companies pursuing a strategy of specialization that seeks to strengthen or expand the market presence of its traditional products. The specialization strategy is more prevalent among SMEs of over 500 employees.

The main areas to which the directors of these companies pay more attention are: sales, production, customer service and quality. Research and development, as well as strategic planning activities, are secondary to the attention of senior managers. Somewhere in between is the area of procurement and logistics. The intense use of computers is low, especially among the smallest.