An Investigation Into Smes Survival and the Discrimination Between Fgsmes and All...

Introduction In a competitive global market, micro, sm e rattling(prenominal) and medium-sized enterprises (SMEs) turning an increasingly important role in a races economy. Today they make a substantial piece to job creation, innovation, as well as entrepreneurial skills. A report conducted by European Commision(2005) stated that in the magnified European Union of 25 countries, 23 million SMEs furnish about 75 million jobs and account for 99% of all enterprise. SMEs be also the vital attributes for lifting the productivity of economy. This is primarily because SMEs are been considered as having a key role to play in providing new products. Take UK for example, SMEs have become more and more dynamic. SMEs have enjoyed higher productivity growth than large firms since 1998, and the rest of SME employers reporting that they have undertaken either product or go innovation in the past 12 months has annexd from 32% in 2005 to 48% in 2006(BERR,2002). An important aspect of SMEs, specially for the young SMEs, is their survival rate, according to Haugh and McKee(2000), survival means impact to exist in the future.

Although we have seen a large increase in new companionship formations and higher levels of their survival pass judgment than the past, we cannot neglect the fact that the rate of failure of these SMEs is also very high. virtually of the firms fail in their infancy stage and nigh fail within several years after start-up. Some statistics suggest that the failure rate of SMEs in their first tailfin years is more than 50% (Reiss, 2006). There are more reasons that contribute to SMEs failure: insufficient capital, poor management skills, poor human resources, lack of innovations and so on. Factors that contribute to small personal line of credit survival and non-survival In order to prosper, all SMEs need to find that they are alert both to opportunities for achieving success and threats to their survival. Only when the company are aware of and deal with these factors correctly, they... If you want to get a full essay, order it on our website: Orderessay

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