The small and medium business is the backbone of the economy as it not only contributes to the GDP but also is very important from the macroeconomic perspectives and also the job opportunities it provide and thus is factor of social responsibility and the economic development. The SMEs are the driving force of business growth, innovation and the competitiveness in the economy. Looking at these aspects maintaining the performance of small and medium business is important and thus the measures have to be taken that strengthen the performance of SMEs. These aspects have been discussed below.
Financial Support: The most important aspect that is associated with the business performance is the financial requirement. Providing financial assistance to start the business is quite important. Irrespective of the sector or industry such support should be available. This can be in the form of subside by or the low interest rates on loans. This will reduce the cost associated with the operations and thus increase the productivity. For example, in the manufacturing sector the financial assistance will enable acquiring production inputs and machinery.
Technical Skills Development: There are certain professions that require technical skills or the development of technical skills will be beneficial for the growth and productivity. For example in manufacturing sector industry specific skill development will be important however in case of agriculture sector it will be essential in developing skills that can be employed to increase the productivity.
Training and Support: There will be need for training and support to develop the skills and add here to the industry standards, regulations and accreditation requirements specific to the industry. This will be very important as it will improve the quality of the products.
Lastly there are certain industry-specific requirements that need to be fulfilled in developing the market for SMEs in these industries. Thus such support will be necessary to generate revenue from operations and thus making the industries self sustainable and provide further growth opportunities.
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Business Strategy Chapter
Short StoryTo improve organizational goal in better way business strategy is very important. To maintain objective and performance of organization one has the clear understanding of Strategy business planning. Before starting any business vision, mission, obje...
